GBP/USD rises for sixth straight day on Yellen remarks


Pound Sterling (GBP) rose against the US Dollar (USD) yesterday, for the sixth day in a row, increasing the GBP/USD to 1.6683 as Fed chair Janet Yellen once again surprised the financial markets with her remarks about the stimulus reduction.

Technical Analysis

The pair is being traded near 1.6649 at 10:00 GMT in London. Resistance can be seen around 1.6685, 23.6% fib level, ahead of the channel resistance that is currently standing near 1.6737. A daily close above the upper trendline will push the cable into stronger upside trend, exposing the double top resistance area as demonstrated in the following chart.


On the downside, the pair is likely to find support around 1.6602, 38.2% fib level, ahead of 1.6532 which is a confluence of the channel support and 50% fib level. The pair has been in a strong bullish trend since last 10 months amid rapid recovery in the UK.

UK Construction Data

On Wednesday, Chartered Institute of Purchasing & Supply and Markit Economics is scheduled to release the Construction Purchasing Managers Index (PMI) for the previous month. According to median projection of different economists, the construction activity in the UK rose last month to 63.0 points as compared to 62.6 points in the month before, better than expected actual figure will be seen as bullish for GBP/USD and vice versa.

US Employment Change

Tomorrow Automatic Data Processing Inc. (ADP) is going to release the employment change figure for the US. According to forecast, companies created 195K new jobs in March as compared to 139K in the month before. Tapering in the stimulus is linked to favorable outcomes from the labor market that is the reason why the report will be monitored very closely by the Federal Open Market Committee (FOMC) policy makers.


Cable is poised for an upside breakout through the daily rising wedge pattern which will accelerate the ongoing bullish momentum in the price.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: US Currency Continues to Grow Ahead of GDP Data Release Market Analysis: Gold and Commodity Currencies Resume Their Decline Market Analysis: EUR/USD Takes Hit While USD/CHF Surges Market Analysis: The Yen and European Currencies Headed to New Lows Market Analysis: US Federal Reserve Contemplates Future Interest Rate Hikes Amid Economic Resilience

Latest articles

Financial Market News

US Government Shutdown: Assessing Economic Impact and Recession Risks

The recurring spectre of a government shutdown has once again loomed over the United States, prompting concerns about its potential economic consequences. The shutdown may occur this weekend unless lawmakers agree on spending levels and whether to give more aid


S&P 500 Analysis: Price Reaches The Edge of Abyss

Investors in the US stock market have serious reasons to worry: → The likelihood of a shutdown of government agencies is becoming more and more real. It could happen as early as next week if a budget agreement is not reached


Bitcoin Cash Analysis: Promising Resistance Breakout

Yesterday, the head of the SEC regulator, Gary Gensler, answered questions for 4 hours before the Financial Services Committee of the US House of Representatives, which, among other things, related to cryptocurrencies. What has become known: → on the eve of

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.