Should We Keep an Eye on the Pound’s Upside Potential After Its Recovery Against the U.S. Dollar?

Should We Keep an Eye on the Pound’s Upside Potential Following Its Recovery Against the U.S. Dollar?

20.03.2026

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen following the BOC announcement. The CAD/JPY pair fell from 116.499 to 114.732. A downtrend developed along the -2σ line of the hourly Bollinger Bands.On the 4-hour chart, the price has fallen just below the 200 SMA; on the daily chart, the price has broken below the 20 MA support line with a real-body candle, and the RSI has dropped from 63 to 47.

European currencies saw the pound rise against the U.S. dollar after the Bank of England (BOE) left its policy rate unchanged at 3.75% at yesterday’s monetary policy meeting.The GBP/USD pair rose from 1.3245 to 1.3466. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the candlesticks surged to just below the 200-period exponential moving average (EMA), while on the daily chart, the price broke below the 200-period simple moving average (SMA) but is now attempting to retest it.

Today’s economic indicators include New Zealand’s trade balance at 6:45, the UK’s net public sector debt and Germany’s producer price index at 16:00, and the Eurozone’s current account balance and trade balance at 19:00,at 20:00, the UK CBI Business Survey; at 21:30, Canadian Retail Sales, Canadian Industrial Product Prices, and the Canadian Raw Materials Price Index; and at 26:30, remarks by Nagel, President of the German Federal Bank.Please note that the Japanese market is closed today due to a public holiday. We will be watching for further upside potential in the pound, which has recovered against the U.S. dollar.