GBPUSD: Breaking Above Resistance, What’s Next?
Last week, we discussed the potential for the GBPUSD pair to advance above the significant resistance level of 1.2470. As of now, the trend seems to be holding true, with the pair trading above this level. This development could be a promising sign for further gains.
Technical Analysis
Let’s take a closer look at the chart. The daily candlestick chart for GBPUSD, as of March 22, 2023, reveals a clear uptrend since the beginning of the year. The pair managed to break above the resistance level of 1.2470 on March 20, 2023, with a high of 1.2512. This move has been accompanied by increasing trading volumes, which adds credence to the bullish sentiment.
The next notable supports for the pair can be found around 1.2360-80 and 1.2250-90, as previously mentioned. These levels acted as resistance during the previous bullish trend and could potentially act as supports during the current downtrend. As long as the pair holds above these supports, the trend is likely to continue.
Impact on Individuals
For individuals holding long positions in GBPUSD, this trend is undoubtedly welcome news. A continuation of the uptrend could result in significant profits for these investors. However, it is essential to remember that forex trading involves risk, and investors should always consider their risk tolerance and trading strategy before making any decisions.
Impact on the World
On a larger scale, the strength of the GBP against the USD could have significant implications for the global economy. A stronger GBP could lead to increased exports for the UK, boosting its economy. Additionally, it could make UK imports more expensive, potentially leading to inflationary pressures.
Furthermore, a stronger GBP could lead to a weaker USD, which could impact the value of other currencies pegged to the USD, such as the Turkish Lira and the Indonesian Rupiah. This could have ripple effects on these countries’ economies.
Conclusion
The GBPUSD pair’s advance above the 1.2470 resistance level is an encouraging sign for bullish investors. However, it is crucial to remember that the trend is not guaranteed to continue, and supports around 1.2360-80 and 1.2250-90 could potentially act as a reversal point. As always, individuals should consider their risk tolerance and trading strategy before making any forex transactions.
- GBPUSD broke above 1.2470 resistance level
- Next supports at 1.2360-80 and 1.2250-90
- Stronger GBP could lead to increased UK exports
- Weaker USD could impact currencies pegged to it
