Should we keep a close eye on the pound, which is facing resistance at higher levels?

Should we keep a close eye on the pound, which is facing resistance at higher levels?

22.07.2024

Last weekend, the foreign exchange market saw a rally in the U.S. dollar, making it the strongest currency. The GBP/USD pair fell from 1.2950 to 1.2900. It broke below the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, it has continued to trade below the 20-period moving average (MA), and on the daily chart, it has fallen for two consecutive days. The pair is retracing from the +2σ line of the Bollinger Bands toward the 10-period MA, which is near the centerline.

While other yen crosses stabilized, the GBP/JPY pair stood out with a notable decline. GBP/JPY fell from 204.214 to 202.952, moving across the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the price has been gradually edging lower toward the support line of the 200-period simple moving average (SMA), while on the daily chart, it has broken below the 20-period MA, and the RSI has dropped from 80 to 46.

Today’s schedule includes New Zealand’s trade balance at 7:45, China’s prime lending rate at 10:15, Turkey’s year-end CPI forecast at 16:00, Taiwan’s employment statistics and the Philippines’ retail sales at 17:00, Hong Kong’s consumer price index at 17:30, Mexico’s retail sales at 21:00,Philippines’ money supply, at 9:30 PM the U.S. Chicago Fed National Activity Index, at 11:30 PM Turkey’s central government debt, and at 12:30 AM the U.S. 3-month Treasury bill auction and the U.S. 6-month Treasury bill auction. We will closely monitor the pound’s movements, as it faces resistance on the upside.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed