GBP/USD Technical Analysis March 18, 2025
As of 14:02 PM NPT on March 18, 2025, the GBP/USD currency pair is trading at approximately 1.2970, reflecting a slight retreat after gains in the previous session. This movement is influenced by both technical factors and ongoing economic developments in the US and the UK.
Current Price Levels and Technical Indicators:
The pair is currently hovering around the 1.2970 level, facing pressure as the US Dollar attempts to recover losses from the last two sessions. However, downside movement may be limited as the US Dollar remains vulnerable amid rising trade tensions and growing economic concerns in the United States.
Technical indicators present a mixed outlook:
Moving Averages: The 5-day and 10-day simple moving averages (SMA) are signaling ‘Buy’, while the 50-day SMA indicates ‘Sell’. This results in a net ‘Strong Buy’ signal based on moving averages.
Technical Indicators: The Relative Strength Index (RSI) is at 49.105, suggesting neutral momentum. However, indicators like Stochastic and MACD are pointing towards ‘Sell’, while Williams %R suggests ‘Buy’. Overall, technical indicators are providing a mixed signal, with a slight lean towards ‘Sell’.
Support and Resistance Levels:
Support: Immediate support is identified at 1.2922, aligning with the S3 pivot point. A break below this level could lead to further downside towards 1.2905 (S2) and 1.2887 (S1).
Resistance: On the upside, resistance is noted at 1.2949 (R3), with additional levels at 1.2943 (R2) and 1.2940 (R1). A decisive break above these levels could pave the way for further gains.
Fundamental Factors:
US Dollar Weakness: The US dollar is facing pressure due to concerns over economic policies and trade tensions. Recent data indicates a decline in consumer sentiment, contributing to the dollar’s softness.
UK Economic Outlook: The British pound is supported by positive economic indicators from the UK, including robust GDP growth and decreasing unemployment rates. However, recent data showing an unexpected contraction in the UK economy by 0.1% in January raises concerns.
Monetary Policy Divergence: The Federal Reserve’s cautious stance on interest rate hikes contrasts with the Bank of England’s approach, influencing currency valuations and market sentiment.
Conclusion:
The GBP/USD pair is currently trading within a narrow range, influenced by mixed technical signals and fundamental developments. Traders should monitor key support and resistance levels, as well as upcoming economic data releases and central bank communications, to anticipate potential market movements.
EUR/USD Technical Analysis March 18, 2025