28.03.202315:09 Forex Analysis & Reviews: GBP/USD outlook for March 28, 2023

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After the Bank of England's rate hike decision last Thursday, the pound strengthened quite sharply, with the GBP/USD pair hitting an intraday high of 1.2342, also corresponding to 7-week highs.

The pair subsequently declined, but yesterday and today the pound, as a risky currency, got support from the improved investor sentiment after the positive news on the American banking sector. U.S. company First Citizens Bancshares Inc. said it was ready to buy part of the Silicon Valley Bank loan portfolio. This decision contributed to the reduction of panic moods and decline in outflow of deposits from medium and small banks of the country.

The breakout of the recent high at 1.2342 may provoke further growth of the pair with the nearest target at the local resistance level 1.2440.

Globally, below the key resistance levels 1.2670 (144 EMA on the weekly chart) and 1.2830 (200 EMA on the weekly chart), GBP/USD remains in a long-term bear market zone.

The very first signals for opening short positions may be the breakdown of support levels 1.2226 (200 EMA on the 1-hour chart), 1.2200 with the nearest targets at 1.2130, 1.2070.

The breakdown of the key support levels 1.2130 (50 EMA and 200 EMA on the daily chart), 1.2070 (144 EMA on the daily chart) will signal a revival of the general downward trend.

Support levels: 1.2280, 1.2226, 1.2200, 1.2130, 1.2100, 1.2070, 1.2000, 1.1920, 1.1900, 1.1800, 1.1160, 1.0940

Resistance levels: 1.2340, 1.2400, 1.2440, 1.2500, 1.2600, 1.2670, 1.2700, 1.2800, 1.2830

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