Could the British Pound maintain the bullish momentum?
Fundamental analysis
GBPUSD dropped after rebounding at the resistance around 1.2500, due to US President Trump’s comment about imposing larger tariffs.
Trump’s emphasis on targeting sectors like semiconductors, pharmaceuticals, and steel raised concerns over trade tensions, especially with Canada and Mexico, fueling the dollar’s strength.
In the UK, the BoE is expected to cut rates in February despite stronger-than-expected PMI data.
Technical analysis
GBPUSD is in a bearish countertrend correction, currently testing the EMA21 as support. The direction of the EMA21 and EMA78 suggests further bullish movements.
If the price continues with bullish momentum after testing the 1.2420 level as support, it could reach the next resistance around 1.2500.
Conversely, if it breaks the support at 1.2420 to the downside, it could head towards the next support level around 1.2360, which coincides with the EMA78.
GBPUSD dropped after rebounding at the resistance around 1.2500, due to US President Trump’s comment about imposing larger tariffs.
Trump’s emphasis on targeting sectors like semiconductors, pharmaceuticals, and steel raised concerns over trade tensions, especially with Canada and Mexico, fueling the dollar’s strength.
In the UK, the BoE is expected to cut rates in February despite stronger-than-expected PMI data.
Technical analysis
GBPUSD is in a bearish countertrend correction, currently testing the EMA21 as support. The direction of the EMA21 and EMA78 suggests further bullish movements.
If the price continues with bullish momentum after testing the 1.2420 level as support, it could reach the next resistance around 1.2500.
Conversely, if it breaks the support at 1.2420 to the downside, it could head towards the next support level around 1.2360, which coincides with the EMA78.
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