GBP USD Technical Analysis March 6, 2025
As of March 6, 2025, the GBP/USD currency pair is trading around 1.2890, showing a positive price movement following recent volatility in both the U.S. and UK markets.
Current Price Levels and Technical Indicators:
The GBP/USD pair has seen an upward trend over the past few hours, currently holding around the 1.2890 level. The pair is exhibiting bullish momentum, with a strong push above recent resistance. The Relative Strength Index (RSI) is at approximately 63, indicating the pair is approaching overbought conditions, but there is still room for further upward movement. The 50-day and 200-day moving averages are both sloping upward, reinforcing the ongoing bullish sentiment.
Support and Resistance Levels:
Support Levels: The nearest support for GBP/USD is at 1.2840, where buyers have recently stepped in to maintain the bullish bias. A break below this level could expose the pair to further declines toward the 1.2750 region.
Resistance Levels: On the upside, the next resistance level is at 1.2950, which is a critical level from previous highs. A breakout above this could open up further room toward 1.3000.
Fundamental Factors:
US Dollar Weakness: The U.S. dollar remains under pressure due to market concerns over U.S. economic growth, especially with the ongoing effects of trade tensions and recent shifts in monetary policy. The market is also focused on Federal Reserve actions and their impact on the U.S. economy.
Bank of England’s Policy Outlook: The UK economy is showing signs of resilience, supported by positive recent data. Investors are closely watching the Bank of England’s next moves, as the central bank is expected to maintain a cautiously optimistic stance, especially in terms of inflation control and employment.
Geopolitical Developments: Any developments in global trade agreements, particularly between the U.S., Europe, and the UK, continue to influence currency markets. The ongoing fiscal policies in the UK could play a significant role in supporting the pound if inflation expectations stay contained.
Conclusion:
The GBP/USD pair is seeing bullish movement at the 1.2890 mark as investors remain optimistic about the UK’s economic resilience despite global uncertainties. Key levels to watch are 1.2840 for support and 1.2950 for resistance. Traders should keep an eye on U.S. economic reports and Bank of England comments, which will play a crucial role in further price movements.
EUR/USD Technical Analysis March 6, 2025