GBP – The pound is technically overbought, and its short-term upward momentum is expected to be limited

The pound stabilized above 1.3150 against the dollar in early trading this month, but has been rising steadily since last week. Given the slight pullback in the RSI and Stochastic indicators, this upward momentum is likely to be limited. Last week saw a significant narrowing of volatility, with the pound remaining below 1.36. The supporting levels are forecasted to 1.35 and 1.3380, with further support at 1.32 and 1.3150, and a key level at 1.30. Resistance levels are expected at 1.36 and 1.3720, with further resistance anticipated at 1.38 to 1.3870.

Forecasted range:
Resistance: 1.3600* – 1.3720 – 1.3800 – 1.3870 – 1.4000
Support: 1.3500 - 1.3380 - 1.3200 – 1.3150 – 1.3000*

Key Focus:
Tuesday: UK Employment Data (14:00)
Wednesday: UK March CPI, PPI, RPI (14:00)
Thursday: UK April PMI (16:30)
Friday: UK GfK April Consumer Confidence Index (07:01)
UK March Retail Sales (14:00)

Any questions? contact our professional analysis team