The British pound is trying to make the most of the weakening dollar. The last five daily candles show a strong growth of GBPUSD. Starting from April 8 and the level of 1.27150 until April 14 and the level of 1.31880, the quotes grew by 3.72% or 4730 points.
Today, on April 15, the currency pair is maintaining its bullish trend and has already approached the resistance level of 1.32600. If the current daily candle closes above it, the next growth target will be the 1.34000 level.
The daily Relative Strength Index (RSI) is at the 60 level, indicating that the market remains bullish. However, the 4-hour RSI is already warning of overbought conditions. The moving average convergence and divergence indicator (MACD) from the hourly to the daily timeframe is above the zero level, confirming the upward trend. Also, the 9-day and 50-day exponential moving averages have an upward slope.
The pound sterling is strengthening against its major rivals. The British currency is rising on the back of positive UK GDP data for the month and manufacturing data for February. The Office for National Statistics (ONS) reported last Friday that the economy grew by 0.5% after stagnating in January.
Investors are looking to reduce the proportion of US assets in their portfolios, even after Donald Trump's tariff pause announcement and amid reciprocal tariff hikes between the US and China. To stabilize the dollar, trade tensions need to be resolved before the US economy faces long-term negative consequences. The American currency will continue to decline in the coming months.
The US Dollar Index (DXY), which tracks the value of the dollar against 6 major currencies, has fallen from 114.700 to around 99.00 (-13.69%), its lowest level in 2.5 years.
Trading strategy option: pending buy stop order at 1.32700, Take Profit at 1.34000, Stop Loss at 1.31400.
This content is for informational purposes only and is not intended to be investing advice.
