Will the rising pound continue to climb, or should we be on guard?

Will the rising pound continue to climb, or should we be on guard?

13.03.2023

Last weekend, the U.S. dollar fell sharply following the release of February’s employment report, which showed a slight rise in the unemployment rate and a slowdown in average wage growth. The EUR/USD pair rose by approximately 120 pips from 1.0573 to 1.0699, breaking back above the 20-day moving average on the daily chart.The EUR/USD pair has continued to rise during today’s Asian session, already touching 1.0736. We will need to carefully assess whether the US dollar’s strength will carry over into the US session.

Among European currencies, the pound strengthened against the U.S. dollar, with GBP/USD rising by approximately 200 pips. GBP/USD climbed from 1.1906 to 1.2113. An uptrend has formed, with the 10-period moving average (MA) on the hourly chart acting as support. On the higher-timeframe 4-hour chart, the pair has broken above the 200-period SMA and has also broken through the resistance zone at the recent high.Following last weekend’s rally, the pair has entered a range-bound market on the daily chart, with a lower bound of 1.1802 and an upper bound of 1.2407. It will be worth watching whether the pound maintains its strength after a period of consolidation.

Today, at 4:00 p.m. CET, Turkey’s current account balance will be released,at 9:00 PM, India’s Consumer Price Index and Mexico’s Industrial Production, and during U.S. trading hours at 11:00 PM, the U.S. Employment Trends Index; at 12:30 AM, the U.S. 6-month Bill Auction; at 3:05 AM, remarks by UK MPC member Dingra; and at 4:00 AM, South Korea’s Export Price Inflation Rate and Import Price Inflation Rate.I want to carefully monitor price movements during U.S. trading hours to see if the rising pound will continue to gain ground.