GBPUSD expected to retreat from 1.34000 to 1.33000 level

The GBPUSD currency pair rose by 1450 points (+1.09%) during the European trading session on Monday, April 28. The daily candle closed above the 1.34000 level. Today, April 29, the daily candle may try to pull back from this resistance level during the Asian session. However, there is a high probability that today's European session will also push quotes toward the pound strengthening against the dollar. If the current daily candle also closes above 1.34000, the pair's price will move toward the next resistance level at 1.36200. Otherwise, there will be a pullback in quotes with 1.33000 as the potential target level.

The Relative Strength Index (RSI) on the hourly timeframe is very sensitive to any price movement. Following the Asian session decline, it also dropped to 52. The four-hour RSI started the day at 73, coming extremely close to the overbought zone. Currently, it shows 60, indicating a shift toward selling pressure. The daily RSI remains at 83 in the overbought zone, providing a strong signal for a potential trend reversal to the downside.

The US dollar is strengthening against the British pound as trade tension concerns ease. On Friday, China exempted some US imports from its 25% tariffs. This boosted investor hopes for a near-term end to the US-China trade war, although China has denied Donald Trump's claim that trade talks between the two countries are currently underway.

US Agriculture Secretary Brooke Rollins said on Sunday that the Trump administration is holding daily discussions with China regarding tariffs. She also stated that trade agreements with other countries are now highly probable.

Firm expectations that the Bank of England will cut interest rates by 25 basis points to 4.25% at its May meeting continue to weigh on the pound.

Trading Strategy: sell at the current price with Take Profit at 1.33000 and Stop Loss at 1.35000.