The British pound is gaining momentum against the US dollar, pushing towards the 1.3000 level in European trading. A renewed sell-off in the greenback is fueling the move as investors shift focus from geopolitical tensions to upcoming US-Russia talks on a potential Ukraine peace deal.
Technical indicators suggest continued bullish momentum, with GBP/USD trading in the upper half of its ascending regression channel. The Relative Strength Index (RSI) remains above 60, reinforcing buying pressure. Immediate resistance is at 1.3000, with further barriers at 1.3040 and 1.3100. On the downside, key support levels lie at 1.2940 (50-period SMA), 1.2900, and 1.2870.
US Data and Risk Sentiment Drive the Market
Monday’s trading session saw a weaker US dollar, as Wall Street’s bullish opening bolstered risk sentiment. The US Census Bureau reported a modest 0.2% monthly rise in February retail sales—far below the expected 0.7%, weighing on the dollar.
Key US economic data, including industrial production, housing starts, and building permits, will be released later today. A weaker-than-expected industrial production figure could further pressure the dollar, while a stronger print may provide short-term support.
- Retail sales: 0.2% (vs. expected 0.7%)
- Upcoming data: US industrial production, housing starts
- Stock market movement: Futures down 0.4%-0.5%
Fed and BoE Decisions Loom Over the Market
Investor caution is expected as central bank decisions approach. The Federal Reserve will announce its policy stance on Wednesday, followed by the Bank of England on Thursday. Any hints of a dovish pivot from either central bank could trigger volatility in GBP/USD trading.
As markets digest economic data and policy signals, traders are closely monitoring risk sentiment and geopolitical developments for cues on the pair’s next move.