Technical Analysis: GBPUSD

The pound increased for the 4^th straight trading day

On Wednesday, GBPUSD increased for the 4^th straight trading day. It increased by 0.31% and closed to 1.2437.

Goldman Sachs raised its forecast for Britain’s terminal interest rate

Recently, Goldman Sachs raised its forecast for Britain’s terminal interest rate to 5.25%. It is expected that the terminal interest rate will reach this level in September. 

Although the BOE is not willing to further raise the interest rate, continued inflationary pressure will urge monetary policy committee to tighten monetary policies, Goldman Sachs said.

The US dollar climbed and then fell

On Wednesday, the USDX climbed and then fell. It reached a 2-month high of 104.70 at one point, but it lost some gains and closed at 104.22.

Technically speaking, the market trend is bullish in the short term

the chart of the day

On the chart of the day, GBPUSD continued to climb. The market trend is bullish in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, demonstrating that GBPUSD will rise further. Investors should focus on whether GBPUSD will break through the resistance at 1.255.

4-hour chart

On the 4-hour chart, GBPUSD increased steadily from a low level. The market trend is bullish in the short term. In terms of technical indicators, MACD broke above the zero axis after golden cross occurred at a low level, showing the market trend is bullish. GBPUSD will rise further if it retreats but is stable above 1.240.

Key resistance: 1.248, 1.255

Key support: 1.240, 1.235

Generally speaking, as the BOE is expected to increase the interest rate, GBPUSD is likely to climb in the short term. Investors should focus on UK Manufacturing PMI (May) during the day.