GBP/USD remained supported above the critical 100- and 21-Daily Moving Averages (DMA) at 1.2048 and 1.2025, respectively, throughout the week. . The GBP/USD pair added more than 100 pips over the week, having found strong support at the 1.2000 psychological level. The further upside in Cable hinges on the policy announcements from the Bank of England (BoE) and the US Federal Reserve (Fed) due in the week ahead.

Pound Sterling bulls, therefore, staged a comeback to recapture the horizontal 50 DMA at 1.2140.

A weekly closing above the latter will initiate a fresh uptrend toward the 1.2400 barrier. However, GBP/USD will need to find acceptance above the March 14 high of 1.2204 and the Valentine’s Day high of 1.2269  for sustained upside.

The 14-day Relative Strength Index (RSI) is holding firmer above the 50.00 level, suggesting that GBP/USD remains poised for additional upside.

On the flip side, the initial support is seen at the bullish 100 DMA, below which the 21 DMA support will be put to test.

A decisive break below the latter will re-open floors toward the mildly bearish 200 DMA at 1.1891. Further south, the year-to-date low at 1.1802 could come to the buyer’s rescue.

GBPUSD has pushed back from the support level. The pair is moving above the Ichimoku Cloud, suggesting an uptrend. A test of the Kijun-Sen indicator line at 1.2105 is expected, followed by a rise to 1.2375. An additional signal in favor of the pair's rise will be a rebound from the lower boundary of the bullish channel. A b reakdown of the bottom line of the indicator Cloud and its consolidation under 1.1935, which will indicate the continuation of falling to the level of 1.1845, will cancel the upside variant.

GBPUSD expected to respect the H4 TL and go bearish

Mar 19 2023