- GBP/USD gains over 0.40%, rebounding from daily lows after US Q1 economic growth underperforms expectations.
- Mixed signals from the US economy support Sterling's rise.
- Technical outlook: Key resistance at 1.2559 with potential to target April 9 high at 1.2709 if upward momentum continues.
The Pound Sterling resumed its advance against the US Dollar, climbing more than 0.40% and trading at 1.2518. During the day, the GBP/USD bounced off daily lows of 1.2450 following the release of mixed economic data from the United States. The US economy in Q1 2024 grew below estimates, which would warrant easing monetary policy. But prices edging up spurred investors' reaction to priced-out rate cuts in 2024.
GBP/USD Price Analysis: Technical outlook
The GBP/USD is aiming up sharply, though it remains bearishly biased. Although the major remains far from the latest cycle high, if buyers regain some key resistance levels, that would ultimately expose the April 9 high at 1.2709, the latest cycle high.
Therefore, the GBP/USD first resistance would be the 200-day moving average (DMA) at 1.2559. A breach of the latter will expose the 1.2600 figure, followed by the 50 and 100-DMAs, each a 1.2624 and 1.2647. Once those levels are surpassed, the April 9 high would be up next.
On the other hand, if GBP/USD slumps below 1.2500, that would keep the downtrend intact and pave the way to re-test the year-to-date (YTD) low of 1.2299.
GBP/USD Price Action – Daily Chart
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