Should we focus on the upside potential of the GBP/USD pair, which has rebounded?

Should we focus on the upside potential of the GBP/USD pair, which has rebounded?

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 traders 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.

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