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06.03.202412:43 Forex Analysis & Reviews: GBP/USD: Pound rose in price amid weakening dollar demand

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GBP/USD rose in price amid growing expectations of monetary easing by the Fed after its meeting in May and the high probability of the Bank of England not cutting rates in the near future.

Dollar weakened further as economic data from the US came out weaker than expected. Forecasts for new job growth from both ADP and the US Department of Labor also turned out to be unimpressive.

Technical outlook and trading idea:

The price currently lies at the upper band of the Bollinger Bands, above the SMA 5 and SMA 14. The RSI has surpassed the 50% level and continues to rise, while the Stochastic indicators turned upwards, crossing this level.

A breakout above the resistance level of 1.2715 will strengthen the upward trend, allowing the pair to continue rising toward 1.2785.

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