FX pair has
slowly moved to the upside reaching 10 weeks high.
Overall, market volatility may increase toward the end of the week, following a series of significant fundamental data releases from the US and UK. Furthermore, the 5-year gilt auction scheduled for May 12th represents a notable opportunity set, contingent upon the market's ability to stabilize and absorb debt more effectively than in previous sessions.
GBP/USD hourly chart analysis
On the hourly timeframe, GBP/USD is currently knocking on the door of the pivotal 1.3622 resistance level, having staged a resilient V-shaped recovery from the 1.3560 intraday low. The technical outlook is shifting toward a bullish breakout as the SMA(60) at 1.35954 acts as a reliable floor, while the MACD has just printed a fresh bullish crossover with a positive histogram, signaling that momentum is finally backing the buyers.
Hourly Chart
GBP/USD daily chart analysis
The GBP/USD daily chart illustrates a sustained bullish trend characterized by a well-defined ascending channel and a rising 30-day Simple Moving Average (SMA) currently positioned at 1.34538. Price action is presently testing a critical horizontal resistance level at 1.3622; a decisive breakout and hold above this mark would likely clear the path for a retest of the February peak near 1.3850 and eventually the psychological 1.4000 barrier.Read More: Technical Analysis
Traders are mixed
GBP/USD trader sentiment is slightly bearish, with 52.25% short positions versus 47.75% long positions.