GBP USD Technical Analysis March 11, 2025
As of March 11, 2025, the GBP/USD currency pair has been exhibiting a bullish trend, influenced by both technical indicators and fundamental factors.
Current Price Levels and Technical Indicators:
The GBP/USD pair has been trading within the range of 1.28753 to 1.29281, reflecting a period of consolidation following a significant rally in the previous week. Technical indicators suggest a continuation of the bullish momentum:
Moving Averages: The pair is trading above its 200-day exponential moving average (EMA) at 1.27181, indicating sustained upward momentum.
Relative Strength Index (RSI): The RSI on the 4-hour chart has risen above 70, suggesting that the GBP/USD has entered overbought territory.
Support and Resistance Levels:
Identifying key support and resistance levels is crucial for anticipating potential price movements:
First Support: 1.28035, identified as a key support level that, if breached, could shift momentum lower, exposing 1.27415 as the next target.
Pivot Level: 1.2797, acting as a pullback support that aligns with the 38.2% Fibonacci retracement, indicating a potential area where price could rebound.
First Resistance: 1.2925, identified as a solid resistance level that the GBP/USD pair is currently facing difficulty surpassing.
Fundamental Factors:
Several fundamental factors are influencing the GBP/USD pair:
US Dollar Weakness: The US dollar has experienced a sharp selloff due to growth concerns, leading to a decline of about 5% since January and reaching a four-month low.
Trade Tariffs: The implementation of new 25% tariffs on imports from Mexico and Canada, along with fresh duties on Chinese goods, has raised concerns about a potential slowdown in the US economy.
Upcoming US Inflation Data: Investors are awaiting US inflation data scheduled for release on Wednesday, with expectations that headline inflation may drop to 2.9% in February.
Conclusion:
The GBP/USD pair is currently exhibiting bullish momentum, supported by technical indicators and fundamental factors such as US dollar weakness and trade tensions. Traders should monitor key support and resistance levels, as well as upcoming economic data releases, to assess potential price movements in the near term.
EUR/USD Technical Analysis March 11, 2025