This week, we’re diving into the GBP/USD currency pair, also known as “Cable,” to provide you with key levels, potential swing trade setups, and important economic events that could influence the market. Let’s get started!
Market Overview: Recent Performance of GBP/USD
The British Pound has been on a bullish run against the US Dollar, recently breaking out of a multi-month downtrend and extending gains by nearly 4.4% from the yearly low. As of March 7, 2025, GBP/USD reached a high of 1.2944, reflecting the pair’s strength amid a cautious Bank of England (BoE) and ongoing trade discussions. cityindex.com FXStreet
Key Levels to Watch on GBP/USD
Support Zones (Where Buyers Might Step In)
-
1.2675: A significant support level; a drop below this could signal further declines.
-
1.2375: A deeper support level; a test here could attract buyers aiming for a rebound.
Resistance Zones (Where Sellers Might Push Back)
-
1.2944: The recent high; a break above this could indicate continued bullish momentum.
-
1.3000: A psychological level; surpassing this could open the door to higher targets.
Swing Trade Setups to Consider
Bullish Scenario (Buying Opportunity):
-
Entry: Look for a retracement to the 1.2675 support level. If the price holds and shows bullish reversal patterns (e.g., bullish engulfing candle, pin bar), consider going long.
-
Targets: First target at 1.2944; if momentum continues, aim for 1.3000.
-
Stop-loss: Place below 1.2600 to manage risk.
Bearish Scenario (Shorting Opportunity):
-
Entry: If GBP/USD fails to break above 1.2944 and forms a bearish reversal pattern (e.g., double top, bearish engulfing), consider shorting.FXStreet
-
Targets: First target at 1.2675; if bearish momentum persists, aim for 1.2375.forex24.pro
-
Stop-loss: Place above 1.3000 to protect against false breakouts.
High-Impact News & Events This Week
Economic events can significantly influence GBP/USD. Here’s what to watch:
Tuesday, March 11:
- UK Employment Data: Average earnings growth is expected to tick up in December, while unemployment may rise to 4.5% from 4.4% in November. Reuters
Wednesday, March 12:
- UK Inflation Data: Inflation is anticipated to increase to 2.8% year-on-year in January from 2.5% a month earlier. Reuters
Thursday, March 13:
- US Producer Price Index (PPI): Provides insight into inflation from the producers’ perspective.
Friday, March 14:
- University of Michigan Consumer Sentiment Survey: Reflects consumer confidence, which can impact economic outlook and currency demand.
Trading Tip: High-impact news can cause sharp price movements. If you’re in a trade, consider tightening your stop-loss before these announcements to protect your profits.
Technical Analysis & Market Sentiment
GBP/USD is trading above channel resistance, holding above the 1.2700 level, indicating bullish momentum. The Relative Strength Index (RSI) is nearing overbought levels, suggesting a possible temporary retracement before further upside.forex.com+1forex.com+1
-
Bullish Outlook: If the price holds above 1.2675, we may see another attempt at 1.2944 and potentially 1.3000.
-
Bearish Outlook: A drop below 1.2675 could lead to a deeper pullback toward 1.2375 before buyers step in again.
For visual analysis and deeper insights, you can watch the following video:
GBP/USD Weekly Forecast for March 10, 2025
Final Thoughts: Trade Smart, Stay Disciplined!
This week, GBP/USD is at a critical juncture. Monitoring key support and resistance levels, along with upcoming economic events, will be crucial for making informed trading decisions. Always adhere to your trading plan and manage risk effectively.
Key Takeaways:
-
Bullish Setup: Consider buying at 1.2675 support with targets at 1.2944 and 1.3000.
-
Bearish Setup: Look for short opportunities if the price fails at 1.2944, targeting 1.2675 and 1.2375.
-
Economic Events: Pay attention to UK employment and inflation data, as well as US PPI and consumer sentiment reports.
Let’s discuss! Share your thoughts in the comments below—do you think GBP/USD will break above 1.3000 this week?
Happy trading, and let’s make those pips count!
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Always conduct your own research before making trading decisions.
