Market Analysis: In Forex, GBP/USD Reaches a New High Since the Beginning of the Year

Today, the British pound has updated its maximum since the beginning of the year. Here are the factors that contributed to this:

→ weakness of the US dollar due to the threat of default. The FT relays Yellen's words that the US Treasury Department's ability to bypass the default is running out;

→ the US dollar's weakness due to the banking crisis. According to media reports, 722 US banks have unrealized losses of more than 50% of capital;

→ the upcoming meeting of the Bank of England (Thursday, at 14:00 GMT+3). A rate increase is expected, which may not be the last.

Technical analysis of the GBP/USD chart indicates that:

→ the median line of the growing channel (1) supports the market;

→ the rate has overcome the line (2), which offered resistance in April. Now the price can test this line from above;

→ the price is near the level of 1.2666 - this is an important peak on the GBP/USD forex chart in May 2022;

→ if the bullish trend strengthens, the price may reach the upper limit (4) of the ascending channel (shown in blue).

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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.