The British Pound (GBP) has been on a solid uptrend movement for two consecutive weeks now after hitting an all-time low at $1.21555 on May 13th, 2022, the lowest price in two years. The market seemed to find strong support in this region; hence the bulls resurfaced, pushing the price to $1.26650 before a short retracement. The price is currently at $1.25340 during the Asian session today.
What is the next move for GBPUSD?
GBPUSD is currently in a consolidation phase after the price failed to break above the 200-EMA level at 1.26010. A sharp price rejection brought the price down to 1.24680 before rising again. However, the bulls need to break above this strong resistance to turn the pair bullish again. Once achieved, we might expect to see a smooth landing to the next resistance at 1.30700.
On the other hand, the pair has formed one-month-old support at 1.24580. As long as this support is not defeated, we might expect the pair to keep rising from the current position. Alternatively, if this support fails, we might see a retest of 1.23284.
What are the factors influencing the GBPUSD?
The strong performance of the US dollar for the past two weeks has primarily discredited the British Pound. However, traders who wish to trade this pair effectively should always pay great attention to the following six fundamental factors:
Interest rate hikes
Market confidence and sentiment
Balance of trade
Economic growth through GDP
Are there other factors to affect the GBPUSD from the Economic calendar today?
The first factor to influence pounds from the economic calendar today is the speech delivered by the Monetary Policy Committee (MPC) member - Silvana Tenreyro today at 4:15 pm GMT. This will give investors further insight into the plan of the body to curb increasing inflations.
Other factors to influence the GBPUSD are data from the US zone, which includes:
US Core durable goods orders
Speech from FOMC member Brainard
Minutes from the FOMC