GBPUSD extends gains toward 1.35400 as dollar weakens

The GBPUSD currency pair has sustained a notable uptrend over the past ten trading days, beginning April 8th. As of today, April 22nd, the pair has gained approximately 5.34%, equivalent to about 6800 points, bringing the price close to the resistance level of 1.34000. This level previously acted as resistance at the end of September 2024, where the price subsequently reversed downwards. Should the price manage to break and hold above 1.34000, the next potential resistance target could be 1.36200.

The Moving Average Convergence Divergence (MACD) indicator remains above the zero line on timeframes ranging from hourly to daily, signaling sustained upward pressure.

The RSI Relative Strength Index from hourly to daily timeframe shows levels of 52, 82 and 69 respectively, confirming bullish momentum.

Donald Trump criticized Federal Reserve (Fed) Chair Jerome Powell for maintaining a cautious, wait-and-see approach to US monetary policy. This fueled doubts about the Fed’s independence and compounded traders’ fears of a US economic slowdown.

David Kelly, Chief Global Strategist at JPMorgan Asset Management, warned that extreme protectionist policies could harm the nation’s reputation, weaken faith in the dollar, and diminish worldwide appetite for American assets.

Tracey Manzi, Senior Investment Strategist at Raymond James & Associates Inc., noted that Treasuries and the dollar were no longer functioning as safe-haven assets and that markets reacted poorly to the latest tariff news.

The S&P 500 Index, which tracks the stocks of the 500 largest US companies, fell 4.57% for the week, closing at 5,176.

Meanwhile, the US Dollar Index (DXY), which measures the dollar against six major currencies, dropped another 2% over the past week, trading at 98.100.

The following trading strategy may be suggested: buying at the current price with Take Profit at 1.35400 and Stop Loss at 1.32800.