- The GBP/USD is pressed by the US PMIS optimists and the growing confidence in the US dollar in the middle of commercial descale signs.
- Trump relieves the nerves of the market by confirming that he has no intention of saying goodbye to Powell, raising the appetite for risk and USD.
- The sterling pound remains above the key support in 1,3250; A rupture below could open the door to try 1,3152 (50 -day SMA).
The sterling pound (GBP) It depreciates against the US dollar on Wednesday, although it recovered slightly after falling to a minimum of four days of 1,3230. The operators seemed relieved that the US president, Donald Trump, although angry with the president of the Federal Reserve (Fed) Powell, you are not looking to say goodbye. At the time of writing, the GBP/USD operations were at 1,3289, with a 0.28%drop.
The GBP/USD falls to a minimum of 4 days before trimming losses behind Trump’s signals that Fed President Powell stays and ahead of tariff cuts in China
The feeling of investors improved after the US session ended on Tuesday and Trump said he is not looking to fire Powell. This promoted global shares and raised the US dollar.
The GBP/USD recently bounced after the news that the White House is considering cutting tariffs to China to display the commercial war, according to the Wall Street Journal. Although the operators celebrated this movement, the PAR is still pressed by the renewed confidence in the US currency.
In the Data Front, the US preliminary PMISs revealed by S&P showed that manufacturing activity in April was improving, unlike the services, which continued to decelerate themselves. The manufacturing PMI rose from 50.2 to 50.7, exceeding the estimates of 49.4, while the service PMI fell from 54.4 to 51.4.
On the other side of the Atlantic, the Global S&P manufacturing PMI in April contracted for six consecutive months. It was 44, as expected, lowering 44.9 in the previous month. The services index deteriorated from a maximum of seven months of 52.5 in March to 48.9, failing in the forecasts of 51.3.
GBP/USD price forecast: Technical Perspectives
In this context, the upward trend of the GBP/USD remains after falling below 1,3300. However, sellers seem to have accumulated impulse as the relative force index (RSI) points towards a neutral level. Even so, they must achieve a daily closure below 1,3250 to be able to test the following key support in 1,3152, the simple mobile average (SMA) of 50 days.
On the other hand, if the GBP/USD rises above 1,3300, buyers could point to the maximum of the year to date (YTD) of 1,3423 reached on April 22.
LIBRA ESTERLINA PRICE THIS WEEK
The lower table shows the percentage of sterling pound (GBP) compared to the main currencies this week. Libra sterling was the strongest currency against the Swiss Franco.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.24% | 0.02% | 0.36% | 0.06% | -0.51% | -1.03% | 1.01% | |
| EUR | -0.24% | -0.36% | 0.05% | -0.21% | -0.92% | -1.30% | 0.75% | |
| GBP | -0.02% | 0.36% | 0.61% | 0.16% | -0.57% | -0.93% | 1.12% | |
| JPY | -0.36% | -0.05% | -0.61% | -0.29% | -0.96% | -1.23% | 0.69% | |
| CAD | -0.06% | 0.21% | -0.16% | 0.29% | -0.68% | -1.09% | 0.97% | |
| Aud | 0.51% | 0.92% | 0.57% | 0.96% | 0.68% | -0.35% | 1.67% | |
| NZD | 1.03% | 1.30% | 0.93% | 1.23% | 1.09% | 0.35% | 2.10% | |
| CHF | -1.01% | -0.75% | -1.12% | -0.69% | -0.97% | -1.67% | -2.10% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the sterling pound from the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the GBP (base)/USD (quotation).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
