Just like the other major currencies, the British pound is trading higher today amid dollar weakness as most markets are still closed for Easter Monday. GBPUSD is up by 0.40% or 50 pips as it trades at 1.2521. It even tapped 1.2535 in the Asian session which marks its highest level since March 8.
It also helped that UK Prime Minister Boris Johnson was discharged from the hospital over the weekend. Last week, gains on the British pound were limited by concerns surrounding the Prime Minister’s health after he was rushed to intensive care for the coronavirus. Now that he has recovered, the immediate risk of political uncertainty for the pound has diminished.
On the hourly time frame, it can be seen that GPUSD has been on an uptrend for the past few trading days. This is evidenced by the rising trend line that becomes apparent when you connect the lows since April 8. If buyers are able to hold on to their momentum, we could soon see GBPUSD trade to 1.2645. This price coincides with the 200 SMA on the daily time frame and could offer the currency pair with resistance.
On the other hand, a break of the trend line at 1.2470 could mean that the uptrend will have been invalidated. GBPUSD could then trade lower to 1.2375 where it could test the SMAs on the 1-hour time frame.More content