GBP/USD: Bullish Extension Eyed as Pound Sterling Price Rises – News and Forecast

Time Stamp: March 21, 2023 3:53 PM
Source Node: 2526355

The GBP/USD currency pair has been on an upward trend lately, with the pound sterling rising against the US dollar. This bullish extension is being closely watched by traders and investors alike, as it could signal a shift in the global economic landscape.

One of the key factors driving this rise in the pound sterling is the ongoing Brexit negotiations between the UK and the European Union. Despite some setbacks and delays, there is a growing sense of optimism that a deal will be reached before the end of the year. This would provide much-needed clarity for businesses and investors, and could help to boost the UK economy.

Another factor supporting the pound sterling is the recent weakness in the US dollar. The COVID-19 pandemic has had a significant impact on the US economy, with unemployment rates remaining high and consumer confidence remaining low. This has led to a decrease in demand for the US dollar, which has weakened its value relative to other currencies.

Looking ahead, there are several key events that could impact the GBP/USD currency pair in the coming weeks and months. These include:

– The US presidential election: The outcome of the US election could have a significant impact on the value of the US dollar. If Joe Biden wins, there may be increased stimulus spending and a more predictable foreign policy, which could support the US economy and strengthen the dollar. If Donald Trump wins, there may be continued uncertainty and volatility, which could weaken the dollar.

– The UK-EU trade deal: As mentioned earlier, a trade deal between the UK and EU could provide a boost to the UK economy and strengthen the pound sterling. However, if negotiations break down and no deal is reached, this could lead to significant volatility in the currency markets.

– COVID-19 vaccine developments: The ongoing pandemic has had a major impact on global economic activity, and any positive developments in terms of a vaccine or treatment could provide a boost to investor confidence and support riskier assets like the pound sterling.

In terms of technical analysis, the GBP/USD currency pair is currently trading above its 50-day moving average, which is a bullish signal. However, there is some resistance around the 1.3200 level, which could limit further gains in the short term.

Overall, the outlook for the GBP/USD currency pair is positive, with a bullish extension eyed as the pound sterling continues to rise. However, traders and investors should remain vigilant for any unexpected developments that could impact the currency markets in the coming weeks and months.