GBP/USD – THe Bullish Trend Will Sustain but Can Expect a Retest of 1.2000

My FX List
March 21, 2023

Long Position

Take Profit: 1.2400
Stop Loss: 1.2200
Timeline: 1-2 days

Short Position

Sell Stop: 1.2290
Take Profit: 1.2200
Stop Loss: 1.2350

On the 4H charts, we observed the pair’s price crossing a key resistance level at 1.2200. Moreover, this implies that the double-top pattern is no longer viable. The cable pair price was rising above the 50% Fibonacci Retracement point and crossing the 25-day and 50-day Exponential Moving Averages. The RSI has moved to an overbought level, and the bullish trend currently appears to be solid. So, the pair price may keep on rising but we can expect a retest taking place as well.

The collapse of Credit Suisse, Switzerland’s second-largest bank, was a cause for the GBP price increasing to 1.2273, which was also the highest price since February 2 of this year. The market’s reaction to the banking sector’s crisis in some way resulted in the cable pair recovering. Following the announcement by the Swiss about the merger of two biggest banks, banking stocks throughout the Eurozone started to decline. In the US as well, the banking sector is in a similar position. Yet, the US stock market remained robust. The impending Fed and BOE interest rate announcements will be the pivotal events for the pair. Another event to anticipate is the upcoming release of UK inflation figures.

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