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GBP/USD Holds Near 1.2970 Amid USD Weakness and Market Caution

Arslan ButtBy No Comments2 Mins Read

GBP/USD continues its upward momentum, hovering around the 1.2970 level as renewed selling pressure on the US dollar supports the pair. Investors remain focused on the upcoming Bank of England (BoE) policy meeting later this week.

  • GBP/USD remains in the upper half of its ascending regression channel.
  • The 4-hour RSI indicator stays above 50, signaling limited selling pressure.
  • Key support levels: 1.2920 (50-period SMA), 1.2870 (static level), and 1.2790-1.2780 (100-period SMA).
  • Key resistance levels: 1.2970 (static level), 1.3000 (round level), and 1.3060 (upper channel limit).

Market Sentiment and Upcoming Data Releases

During European trading hours, US stock index futures slipped by 0.5%, reflecting cautious market sentiment. Despite this, GBP/USD maintains support, with traders avoiding major moves ahead of significant macroeconomic events.

Key economic events to watch:

  • Wednesday: The Federal Reserve announces its interest rate decision and releases updated economic projections (dot plot).
  • Thursday: The Bank of England is expected to hold interest rates steady.
  • Monday: The US reports February Retail Sales, projected to grow 0.7% after a 0.9% decline in January.

Potential GBP/USD Movements

A weaker-than-expected US retail Sales report could put downward pressure on the USD, providing an immediate lift to GBP/USD. However, a bearish turn in Wall Street markets could later support the greenback, capping the pound’s gains.

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Arslan Butt is a seasoned live webinar speaker and derivatives analyst with expertise in cryptocurrencies, forex, commodities, and indices. With a strong background in both technical and fundamental analysis, Arslan helps traders—especially beginners—navigate financial data, assess market trends, and develop effective trading strategies. Arslan has extensive experience in the cryptocurrency and forex markets, focusing on price forecasting and market predictions. His previous role at a leading brokerage firm involved managing risk for forex and cryptocurrency trading clients, further refining his expertise in speculative positioning and risk management. Specializing in trading psychology, market sentiment, and price action analysis, Arslan has contributed to prominent platforms such as Cryptonews, ForexCrunch, InsideBitcoins, and EconomyWatch. His goal is to equip traders with the insights and tools they need to make well-informed investment decisions.

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