GBP/USD Forex Signal Today 16/04: To Retest 1.1200 (Chart)

(MENAFN- Daily Forex) Bullish view

• Buy the GBP/USD pair and set a take-profit at 1.3425.
• Add a stop-loss at 1.3100.
• Timeline: 1-2 days.

Bearish view

• Sell the GBP/USD pair and set a take-profit at 1.3100.
• Add a stop-loss at 1.3425.

The GBP/USD exchange rate continued soaring, reaching its highest level since October last year as the US dollar index crash gained steam. It rose to a high of 1.3247, much higher than this year's low of 1.2100 as focus shifts to the upcoming UK inflation and US retail sales data.

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The GBP/USD exchange rate has been in a strong uptrend this year as the US dollar index plunged.

This rally continued on Tuesday after the UK released the relatively strong jobs data. According to the Office of National Statistics (ONS), the unemployment rate remained unchanged at 4.4%, while the economy added over 206k jobs in the three months to February.

The next key data to watch will be the closely watched UK inflation report. Economists expect the data to show that the headline Consumer Price Index (CPI) remained at 2.8% and the core figure rose from 3.3% to 3.5%.

The UK will also publish the latest retail sales numbers, which are expected to show that the headline sales fell from 3.4% to 3.1%.

All these are important numbers that will help guide the Bank of England make its interest rate decision later this year. Analysts expect that the bank will maintain interest rates intact in the next meeting in May as inflation is significantly above its 2% target rate.

The GBP/USD exchange rate will next react to the latest US retail sales data, which will provide more information about the health of the American economy ahead of Donald Trump's tariffs. Economists expect the numbers to show that retail sales softened a bit in March.

The US will also publish the latest industrial and manufacturing production numbers. These two figures are expected to come in softer as participants waited for the Trump's Liberation Day tariffs.

EURUSD Chart by TradingViewGBP/USD technical analysis

The GBP/USD exchange rate continued its strong surge this week as the US dollar index retreated. It jumped to a high of 1.3247, its highest level since October 3rd last year.

The pair has retested the upper side of the ascending channel shown in green as the momentum continued. It has also moved above the 50-day moving average, while the Relative Strength Index rose closer to the overbought level at 70.

Therefore, the pair will likely continue rising, with the next key level to watch being at 1.3425, the highest point on September 26.

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