GBP/USD Technical Analysis April 8, 2025
Current Price Levels and Technical Indicators:
As of 7:00 GMT on April 8, 2025, the GBP/USD pair is trading around the 1.2775 level.
Technical indicators are signaling bearish momentum:
Relative Strength Index (RSI): The RSI on the 4-hour chart remains below 40, indicating a lack of buying interest.
Moving Averages:
50-period SMA: Positioned near 1.2960, acting as a resistance level.
200-period SMA: Located around 1.2860, serving as a dynamic resistance.
Support and Resistance Levels:
Key levels to monitor:
Support:
1.2740: Recent low and a static support level.
1.2700: Psychological support level.
1.2605: Identified as a potential target in case of further decline.
Resistance:
1.2860: Aligns with the 200-period SMA.
1.2960: Corresponds with the 50-period SMA.
1.2985: Noted as a resistance area in recent forecasts.
Fundamental Factors:
Several fundamental factors are influencing the GBP/USD pair:
US Tariffs: President Donald Trump’s recent imposition of tariffs has heightened fears of a global recession, leading investors to seek safe-haven assets like the US Dollar.
Bank of England’s Monetary Policy: Former Deputy Governor Charlie Bean has advocated for an aggressive interest rate cut of at least 0.5 percentage points to 4% in response to the economic turmoil caused by the tariffs.
Market Sentiment: The pound has weakened significantly, reaching a one-month low against the US Dollar, as investors move away from risk-sensitive assets amid escalating trade tensions.
Conclusion:
The GBP/USD pair is currently under bearish pressure, trading around the 1.2775 level. Technical indicators and moving averages suggest resistance near 1.2860 and 1.2960, while support is observed at 1.2740 and 1.2700. Fundamental factors, including escalating US tariffs and potential shifts in the Bank of England’s monetary policy, are contributing to the pair’s decline. Traders should closely monitor these developments, as they are likely to influence the pair’s movement in the near term.
EUR/USD Technical Analysis April 8, 2025