- The GBP/USD attracts some buyers about 1,3290 in the first part of the European session on Monday.
- The positive perspective of the tar prevails above the 100 -day key em.
- The first bullish barrier is located at 1,3445; The initial support level is located in 1,3234.
The GBP/USD pair earns traction around 1,3290 during the first part of the European session on Monday. The US dollar (USD) weakens in front of the sterling pound (GBP) in the midst of greater economic uncertainty after the erratic commercial policies of US President Donald Trump.
According to the daily graph, the upward perspective of the GBP/USD remains intact, characterized by the price remaining above the 100 -day exponential (EMA) mobile average. The bullish impulse is backed by the 14 -day relative force (RSI) index, which is located above the midline about 55.60, suggesting that the lower resistance path is upward.
The immediate resistance level arises in 1,3445, the maximum of April 28. Extended earnings could see a rebound around 1,3580, the upper limit of the Bollinger band. Further north, the following obstacle is in 1,3642, the maximum of February 18, 2022.
On the contrary, the minimum of April 23 in 1,3234 acts as an initial support level for the main torque. The key containment level to monitor is the psychological level of 1.3000. The additional filter is observed in 1,2905, the 100 -day EMA, followed by 1,2870, the lower limit of the Bollinger band.
GBP/USD daily graphics
LIBRA ESTERLINA FAQS
The sterling pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most commercialized currency exchange unit (FX) in the world, representing 12% of all transactions, with an average of $ 630 billion a day, according to data from 2022. Its key commercial peers are GBP/USD, which represents 11% of FX, GBP/JPY (3%) and EUR/GBP (2%). The sterling pound is issued by the Bank of England (BOE).
The most important factor that influences the value of sterling pound is the monetary policy decided by the Bank of England. The Bank of England bases its decisions itself has achieved its main objective of “price stability”: a constant inflation rate of around 2%. Its main tool to achieve this is the adjustment of interest rates. When inflation is too high, the Bank of England will try to control it by raising interest rates, which makes access to credit for people and companies more expensive. This is generally positive for sterling pound, since higher interest rates make the United Kingdom a more attractive place for global investors to invest their money. When inflation falls too much it is a sign that economic growth is slowing down. In this scenario, the Bank of England will consider lowering interest rates to reduce credit, so that companies will borrow more to invest in projects that generate growth.
Published data measure the health of the economy and can affect the value of sterling pound. Indicators such as GDP, manufacturing and services PMI and employment can influence the direction of the sterling pound.
Another important fact that is published and affects the pound sterling is the commercial balance. This indicator measures the difference between what a country earns with its exports and what you spend on imports during a given period. If a country produces highly demanded export products, its currency will benefit exclusively from the additional demand created by foreign buyers seeking to buy those goods. Therefore, a positive net trade balance strengthens a currency and vice versa in the case of a negative balance
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
