Attention Turns to Upside Potential for the Pound-Dollar Pair Following Its Rebound

Attention on Upside Potential for the Pound-Dollar Pair Following a Rebound

21.01.2025

In yesterday's U.S. trading session, the Canadian dollar rose against the yen. The CAD/JPY pair climbed from 107.754 to 109.010. The candlestick extended significantly up to the 200-period EMA on the hourly chart. On the 4-hour chart, the RSI has recovered from 38 to 53. However, during today's Asian session, the Canadian dollar has faced resistance at higher levels and has broken below yesterday's low, so we should pay close attention to price movements during the U.S. session.

Among European currencies, the pound rose sharply against the U.S. dollar.GBP/USD rose from 1.2160 to 1.2343. The price broke above the resistance line formed by the 200-period simple moving average (SMA) on the hourly chart with a real body candle. On the 4-hour chart, it has surpassed last week’s high, and on the daily chart, the price has rebounded from the -2σ Bollinger Band and is returning toward the centerline. We will be watching price movements during European trading hours to see if the pound’s momentum holds.

Today’s economic indicators include the UK ILO unemployment rate and UK employment figures at 4:00 PM, the Hong Kong Consumer Price Index at 5:30 PM, the German ZEW Economic Sentiment Index and the Eurozone ZEW Economic Sentiment Index at 7:00 PM, the Canadian Consumer Price Index at 10:30 PM, the South Korean Consumer Confidence Index at 6:00 AM the following day, and the New Zealand Consumer Price Index at 6:45 AM.We should keep an eye on the upside potential for the GBP/USD pair, which has rebounded and is on the rise.