GBP/USD Technical Analysis April 4, 2025
Current Price Levels and Technical Indicators:
As of 7:00 GMT on April 4, 2025, the GBP/USD pair is trading at approximately 1.3089.
Relative Strength Index (RSI): The RSI is approaching the overbought threshold, indicating strong bullish momentum.
Moving Averages: The pair is trading above the 20-period, 50-period, and 100-period Simple Moving Averages (SMA), reflecting a prevailing uptrend.
Support and Resistance Levels:
Support Levels: Immediate support is observed at 1.3057, followed by 1.3030.
Resistance Levels: Resistance is noted at 1.3131, with a subsequent level at 1.3159.
Fundamental Factors:
The recent appreciation of the British pound against the U.S. dollar is largely attributed to the announcement of sweeping tariffs by U.S. President Donald Trump. These tariffs include a 10% baseline duty on all imports, with higher rates for key partners—20% for the EU and 24% for Japan. The UK is also affected by these measures, leading to increased market volatility.
In response to these developments, investors have adjusted their expectations regarding the Bank of England’s monetary policy, now anticipating potential interest rate cuts to mitigate economic impacts.
Conclusion:
The GBP/USD pair is exhibiting bullish momentum, supported by favorable technical indicators. However, the recent U.S. tariff announcements have introduced significant uncertainty into the market. Traders should closely monitor ongoing geopolitical developments and upcoming economic data releases, as these factors are likely to influence the pair’s trajectory in the near term.
EUR/USD Technical Analysis April 4, 2025