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.