The GBPUSD posted another week of gains, but after reaching highs not seen in nearly ten months
The GBPUSD pair reversed slightly lower. After demonstrating a high around the 1.2525 level on April 4th, the pair traded as low as 1.2410. Early June 2022 was the previous time the GBPUSD exchange rate had been this high. While the week’s end did not show a significant positive trend for the duo the technical concept did. That shows the forex pair is going upward when considering mid-term charts were supported by the week’s outcomes.
Day traders who refused to take a holiday into account. That would have seen a reduction in duo transaction volumes on Thursday and Friday of last week due to the release of US employment data. The latest numbers on US non-farm employment and wages were released last Friday and aligned with forecasts. Nevertheless, as the weekend approached, volatility entered the market. And the GBPUSD briefly dropped from the 1.2430 area to below 1.2390. Some bullish currency cross traders may favorably view the small upward movement with a close above the 1.2410 level.
The market will scrutinize CPI and PPI next week
Two key measures of inflation in the US, the CPI and PPI, will be issued on Wednesday and Thursday, respectively. The United States will release its latest retail sales data this coming Friday. The UK’s GDP data (which could signal growth or recession) will also be released on Thursday.
Due to the lengthy Easter weekend, many banks and other financial institutions will likely close on Monday as forex trading opens. Day traders should be cautious on Monday. As trading conditions may remain volatile due to low volume. Many traders will return on Tuesday and start positioning their portfolios in anticipation of US inflation data releases. While economic releases are crucial, the resumption of normal volume may spark GBPUSD.
The currency pair is likely to look for full market volume and momentum
The GBPUSD currency market’s restoration to full volume will be vital for traders, even more so than the statistics from the United States and the United Kingdom. After a robust bullish ascent higher this past month. The GBPUSD is currently nearing values near the hopeful highs of January and December and is closing in on marks last seen in June of 2022.
GBPUSD Weekly Forecast:
GBPUSD trading range is expected to be between 1.2360 and 1.2590. The behavioral mood remains crucial even in a potentially bullish trading situation for the GBPUSD, and support levels should be watched. Although there are downside risks and traders should exercise caution, there is a technical possibility that support between the 1.2400 to 1.2380 levels can prove durable.
Day traders, as always, need to be wary of their exposure. the traders may want to speculate on an upside reversal if the 1.2400 level fails to halt selling. In this case, determining where support will thicken is crucial. After releasing US inflation data, traders should consider the GBPUSD a high-risk trade. Therefore, the GBPUSD could fall more if inflation proves to be bigger than anticipated.
The duo’s month-long upward trend is as intense as ever. According to market sentiment, many major financial institutions are optimistic about the future of the GBPUSD. The cross pair could rise this week if US inflation and personal spending statistics released Wednesday and Thursday come in lower than expected. Bearish sentiment could emerge if US inflation data confirm or strengthen predictions.
Buyers may find this week’s brief break over 1.2500 fascinating, but they should maintain a grounded perspective and wait to take large profits until inflation statistics are out. The duo exchange rate would improve if the US government reported lower inflation numbers.
