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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