Today, the British pound has updated its maximum since the beginning of the year. Here are the factors that contributed to this:
→ weakness of the US dollar due to the threat of default. The FT relays Yellen’s words that the US Treasury Department’s ability to bypass the default is running out;
→ the US dollar’s weakness due to the banking crisis. According to media reports, 722 US banks have unrealized losses of more than 50% of capital;
→ the upcoming meeting of the Bank of England (Thursday, at 14:00 GMT+3). A rate increase is expected, which may not be the last.
Technical analysis of the GBP/USD chart indicates that:
→ the median line of the growing channel (1) supports the market;
→ the rate has overcome the line (2), which offered resistance in April. Now the price can test this line from above;
→ the price is near the level of 1.2666 – this is an important peak on the GBP/USD forex chart in May 2022;
→ if the bullish trend strengthens, the price may reach the upper limit (4) of the ascending channel (shown in blue).
