GBPUSD Reclaims 1.28 – BRC Retail Sales Monitor Reverses

The GBP to USD rate has been on an upward trajectory for the past two months, reflecting a period of strength for the British pound against the US dollar. However, last week, the pair encountered significant resistance at the 1.28 level, causing the price to retreat below 1.27.

GBP/USD Chart Daily – The 100 SMA Is Holding As Resistance Again

Despite this setback, the GBP/USD pair found support at the 20-day Simple Moving Average (SMA), which helped to stabilize the decline. Following this support bounce, the pair reclaimed the 1.28 level yesterday. This rebound was largely driven by softer-than-expected US ISM manufacturing data and ISM manufacturing prices, which weakened the US dollar and provided a boost to the pound.

The 20 Simple Moving Average (SMA), depicted by the grey line on the chart, is an important technical indicator of this likely reversal. This moving average was a strong resistance indication for this currency pair earlier this year until March, rejecting the price, but it has since changed into support.

Yesterday the British Pound rose for the third day in a row versus the US Dollar, gaining 1 cent in early trade during the North American session and reaching 1.28. From a daily chart standpoint, the GBP/USD is upward biassed as buyers maintain their momentum, as indicated by the stochastic indicator, which points upward. However, purchasers must clear the technical levels at 1.2800. Once surpassed, the next resistance will be around the high for 2024 at 1.2900.

BRC Retail Sales Monitor

GBP/USD Live Chart