GBP USD Technical Analysis March 5, 2025
As of March 5, 2025, the GBP USD currency pair has exhibited significant bullish momentum, influenced by recent economic developments and technical factors.
Current Price Levels and Technical Indicators:
In the past few hours, GBP USD has continued its upward trajectory, successfully reaching and surpassing the anticipated target of 1.2765. This breach indicates the persistence of the bullish correction on both intraday and short-term bases, setting the stage for potential additional gains towards 1.2925.
Technical indicators currently reinforce this bullish sentiment. The pair is trading within an ascending channel, suggesting a sustained upward trend. The Relative Strength Index (RSI) is approaching overbought territory, reflecting strong buying pressure.
Support and Resistance Levels:
The immediate resistance for GBP USD is identified at the December high of 1.2812. A decisive break above this level could pave the way for further gains, potentially targeting the 1.2900 to 1.2910 zone. On the downside, support is observed around the 1.2650 mark, which could serve as a buffer against potential declines.
Fundamental Factors:
The recent strength of the British pound can be attributed to several fundamental factors. A notable development is the UK’s exemption from new US tariffs, which has bolstered investor confidence in the pound. This exemption has positioned the pound as a relatively safer asset compared to other currencies facing tariff-related pressures.
Additionally, the pound’s appreciation is supported by diminished expectations of immediate US tariff hikes and stronger-than-expected UK economic data. Investors are also awaiting key economic indicators, including employment and inflation figures, which could further influence the currency’s trajectory.
Conclusion:
The GBP USD pair has demonstrated robust bullish momentum, driven by both technical patterns and supportive fundamental developments. Traders should monitor the resistance level at 1.2812 and the support around 1.2650 for potential trading opportunities. Staying informed about ongoing economic policies and geopolitical events will be crucial in anticipating future price movements in this currency pair.
EUR/USD Technical Analysis March 5, 2025