The GBPUSD broke resistance 1.2443 yesterday, the 5th of April, 2023 after moving sideways for about three and a half months. This breakout might put some Investors on edge and they might be watching price action to see if GBPUSD is indeed ready to go north.
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The pair GBPUSD has been choppy since December, 2022 and only yesterday, 5th of April, 2023, price broke out of the channel. This can be seen on the GBPUSD daily chart below:
As at the time of writing, price is now testing resistance turned support at 1.2443 as can be seen on the 4hr chart below:
The dollar has been under pressure since the announcement of banking crisis in the United States of America. Notable banks that failed are the Silicon Valley Bank and Signature Bank.
This bank failure is one of the reason the pound is appreciating against the dollar.
Few days ago the Chief Economic adviser to the Bank of England and Member of the Monetary Policy Committee, Huw Pill, hinted that interest rates might be hiked in the Month of May while delivering a speech to the Graduate Institute in Geneva.
With recent developments in UK and USA and the breakout of a three and half month old channel, investors might hope to see GBPUSD go North.