GBPUSD has gained bullish momentum and climbed to its highest level since June 2022 above 1.2500. After a consolidation period in the Asian session on Tuesday. The pair’s near-term technical forecast indicates that before the pair continues to go higher. There may be a technical pullback.
The GBPUSD advance this week is supported by the widespread selling pressure. That has been present around the US Dollar (USD) since the start of the American session on Monday. Despite resurgent worries that rising crude oil prices may have a detrimental influence. On the pace of global economic growth and the forecast for inflation, risk flows dominated markets on Monday. Making it difficult for the dollar to find buyers.
The US dollar remains weak early on Tuesday despite the market’s general optimism. As US stock index futures are trading slightly higher. A looser stance on policy is required to achieve the inflation objective. According to Bank of England (BOE) policymaker Silvana Tenreyro. Who voted to maintain the policy rate at 4% at the most recent policy meeting.
Tenreyro stated, “I assess inflation is likely to fall far below goal in the absence of significant counterbalancing cost-push shocks,” noting that the BOE policy is already restrictive. But it doesn’t appear like these remarks are currently having much of an effect on how Pound Sterling is performing.
February Factory Orders and JOLTS Job Openings data from the US will be examined for new traction later in the day. Nonetheless, the Dollar is probably going to struggle to outperform its competitors unless there is a trend in markets towards safe-haven assets.
GBPUSD Technical Outlook
GBPUSD remains close to the top of the ascending regression channel that dates back to early March on the four-hour chart, and the Relative Strength Index (RSI) is on the verge of crossing over 70, indicating that the pair is almost ready to enter overbought territory.
If the psychological level of 1.2500 (the upper limit of the channel) holds, the GBPUSD pair may correct towards the midpoint of the channel at 1.2450. If that level fails, sellers may then aim for the psychological level of 1.2400.
On the plus side, a daily close over 1.2500 would entice more buyers and pave the way for a prolonged rise towards 1.2600. (Psychological levels static level from June 2022).
