GBPUSD: Road Map from 1.2640 to 1.244

2 Apr

The British Pound experienced a significant decline during the mid-North American session, primarily due to the outlook of US economic data, which could influence the Federal Reserve's interest rate decisions. Optimism regarding the strength of the US economy bolstered the US Dollar, while US Treasury yields increased significantly, exerting additional pressure on the Cable (GBP/USD). Looking ahead, if sellers manage to push the exchange rate below 1.2550, the next target could be the threshold of 1.2500. However, if the pair surpasses the 200-DMA, we might witness a potential recovery, with 1.2600 as the next resistance zone, followed by the 100-DMA at 1.2649. Meanwhile, in the United States, economic data from the Institute for Supply Management (ISM) showed growth in economic activity in March, suggesting resilience in the US economy. The Purchasing Managers' Index (PMI) exceeded expectations, also highlighting an increase in the Prices Paid Index, which could complicate the Federal Reserve's plans to adopt a more accommodative monetary policy. Best wishes and happy trading to all.