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29.04.2022 03:24 PM
Trading Signal for GBP/USD for April 29 - 30, 2022: buy above 1.2565 (21 SMA)

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GBP/USD recovered part of its weekly losses, driven by the general correction of the dollar and the rise in European stock markets. In the European session, it reached 1.2573 and recovered about 170 pips. It means that a change in trend could occur in the coming days.

In just six days of consecutive declines, GBP/USD fell from the psychological level of 1.30 to 1.24. As a consequence, the Fed will raise its interest rate next week.

On April 28, GBP/USD bottomed at 1.2410, the lowest level since June 2020. It then began a rebound that accelerated on Friday during the European session, mainly driven by a general decline in the dollar (USDX).

Early in the American session, the British pound reached a key resistance zone that coincides with the top of the downtrend channel. This level is the key. A sharp break and a close above 1.2565 could mean a change in trend in the short term and the price could reach 4/8 Murray located at 1.2695.

The dollar index (USDX) is falling, having reached 103.92. Today in the American session, the index is bouncing after having reached the low of 102.78. According to the monthly chart, the dollar climbed to a key resistance zone. Therefore in the coming days, we could expect more technical corrections which will set the stage for a recovery of the British pound.

According to the 4-hour chart, we can see that the pound is touching a strong resistance around 1.2583. Therefore, in the next few hours, we can expect a technical correction towards the 61.8% Fibonacci located at 1.2476.

On the contrary, a daily close above 1.2565 could mean more advance for the pound and in the next week, it could reach the zone of 1.2695 (4/8) and even the zone 5/8 at 1.2939.

The eagle indicator is giving a positive signal. Any technical correction will be an opportunity to continue buying. Therefore, as long as GBP consolidates above 3/8 Murray around 1.2451, the outlook remains positive.

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