Daily Analysis GBPUSD - 20 Mar 2023

Fundamental Outlook: On Sunday, the Bank of England expressed support for the proposed acquisition of Credit Suisse by UBS, which was brokered by Swiss authorities. The Bank also stated that it would endorse the approval of the deal, and reassured that the British banking system is adequately funded.

Technical Analysis: After analyzing the daily chart for the Pound, it appears that the current price is being supported by the 8-day exponential moving average. Moreover, the price is attempting to maintain its position above the 50-day moving average. However, there is a strong resistance level ranging between 1.2195-1.2210, which may restrict further upward movement in the price. Breaking through this resistance level could result in a surge of price acceleration. In the event of a failure to break through this level, there is potential for a trend reversal. As for support levels, traders should keep a close eye on the 1.2125 level, which is considered a critical support level.

Support: 1.2125 – 1.2080 – 1.2030       Resistance: 1.2195 – 1.2210 – 1.2270