GBPUSD retreat today after a five days rally that drove the price up to two-month highs amid USD weakness across the board as investors increase bets that the Fed will proceed with one more emergency cut in an attempt to support the coronavirus battered global economy. On the other hand economists expect that the Bank of England will also cut the interest rates by 50 basis point in the next policy meeting on March 26.
Traders await tomorrow the UK budget for fresh clues on the fiscal policy that might affect the British pound.
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GBPUSD Resistance and Support
GBPUSD retreat today giving up 0.55% as the pair corrects from reeecent highs. The pair earlier tested the 50-day moving average and bounced successfully keeping the positive momentum intact. The technical outlook is positive for GBPUSD but a settlement today below the 50-day moving average might attract more sellers.
On the downside, first support for the GBPUSD pair stands at 1.3015 the daily low and ttthe 5000-day moving average. Next support for GBPUSD will be met at 1.2991 the 100-day moving average. More bids might emerge at 1.2861 the low from March 5th.
On the other hand, resistance seen at 1.3123 the daily high. If GBPUSD breaks above, the next resistance level is at 1.3201 the high from yesterday’s trading session. More offers would be met at 1.3270 high from January 2nd.
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