GBPUSD Technical Analysis – The GBPUSD currency pair saw increased volatility following the saga around SVB and Credit Suisse.
Price action saw resistance around 1.23000-1.23500 on Wednesday 22nd and Thursday 23rd March 2023 trading day, with Friday 24th March confirming it. Recall this level held price from Tuesday 24th January until Thursday 2nd February 2023.
With the above background, we expect price action to find minor support around the 1.21000 or 1.19920 level. If the level holds price, then we anticipate a bull run to target the 1.2150 price level.
As we head into the last trading week for the month of March 2023, there are several upcoming events that traders need to be aware of.
The BOE Gov Bailey will speak twice on Tuesday, March 28th, at 9:45 am GMT and 3:00 pm GMT.
This could potentially move the markets if any significant announcements are made. The CB Consumer Confidence index, which is scheduled for release at 3:00 pm GMT, is another important event to watch.
US Final GDP March 29th, 2023
On Wednesday, March 29th, the US will release several important economic indicators, including the Pending Home Sales m/m, Final GDP q/q, and Unemployment Claims.
The Pending Home Sales m/m and Unemployment Claims reports could have a significant impact on the USD, and traders should pay close attention to any unexpected results.
The Final GDP q/q report is expected to remain unchanged at 2.7%, and any deviations from this figure could potentially impact the markets.
Finally, the Final GDP Price Index q/q and the Richmond Manufacturing Index, which is expected to decrease from -10 to -16, will also be released on Wednesday.
On Friday, March 31st, the USD Core PCE Price Index m/m report is scheduled for release at 12:30 am GMT. This report is a key indicator of inflation and could potentially move the markets if it deviates significantly from expectations.
GBPUSD Technical Analysis
Now, let's take a look at the GBPUSD H4 chart to get a better idea of what to expect this week.
As we can see from the chart, the GBPUSD pair has been in a bullish trend since March 21st, 2023. The pair has been making higher highs and higher lows, indicating a strong uptrend.
However, the pair faced resistance around the 1.23500 level, and a bearish reversal pattern formed on March 23rd, which led to a pullback towards the 1.21000 level.
Currently, the pair is trading above the 1.21000 level, indicating that the bulls are still in control.
However, there is a significant resistance level around the 1.23000-1.23500 level, which the pair needs to break to continue its bullish momentum.
If the pair fails to break this level, we could see a bearish reversal pattern forming, which could lead to a pullback towards the 1.19920 level.
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If GBPUSD Pair Break the 1.23000-1.23500 level
To elaborate further, the 1.23000-1.23500 level has been a significant resistance zone for the pair in the past, and a break above this level would signal a strong bullish sentiment in the market.
This could potentially attract more buyers to the market and push the pair further towards the 1.25000 level.
Despite the bullish outlook, it's important to note that the RSI indicator is currently in the overbought zone, which means that the pair may have been overbought and due for a correction.
Traders and investors should be cautious and consider taking profits or implementing risk management strategies to protect their positions.
Overall, while the MACD indicator suggests that the bulls are still in control of the market, traders and investors should remain vigilant and monitor price movements closely to avoid potential losses.