Market participants are likely to watch the back-and-forth movement of the pound-dollar exchange rate with caution

Market participants are likely to watch the fluctuating GBP/USD exchange rate with caution

19.05.2025

Last weekend, the U.S. dollar rose slightly against the euro. The EUR/USD pair fell from 1.1218 to 1.1131. It pulled back after encountering resistance at the 200-period EMA on the hourly chart. On the 4-hour chart, the RSI has fallen from 51 to 38, and on the daily chart, the pair is currently searching for direction as it faces resistance just below the upper 20-period MA.We will be watching closely to see if a clear direction emerges at the start of the week during U.S. trading hours today.

Among European currencies, the pound fell slightly against the U.S. dollar. The GBP/USD pair dropped from 1.3332 to 1.3250. On the hourly chart, the price fell from the +2σ to the -3σ Bollinger Bands. On the 4-hour chart, the price is holding just below the 20-period moving average, and on the daily chart, it has continued to trade at the same level since the start of this month.We will be watching to see if any distinctive price movements emerge during today’s U.S. trading session.

Today’s economic indicators include the New Zealand Producer Price Index at 7:45, the UK Rightmove House Price Index at 8:01, the Japan Tertiary Industry Activity Index at 13:30, and the Eurozone, 9:30 PM US Consumer Price Index, 9:30 PM remarks by Bostic, President of the Atlanta Fed, 9:45 PM remarks by Jefferson, Vice Chair of the Federal Reserve, 11:00 PM US Leading Economic Index, and 1:30 AM remarks by Schlegel, Governor of the Swiss National Bank. We will carefully monitor the tight trading range in the GBP/USD pair.