GBP/USD: Taper Tantrum? Powell May Push Sterling Off The Cliff

Here are the upcoming top US events this week:

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GBP/USD technical analysis

Pound/dollar continues trading in the wide 1.3670 to 1.4010 range, as the daily chart shows. While momentum is to the upside in the past week, the pair slipped below the 50-day Simple Moving Average (SMA). Nevertheless, it remains above the 100-day and 200-day SMAs. Overall, bulls are in the lead, but it is narrowing.

Support awaits at 1.38, which capped the pair on its way up in mid-April. It is followed by 1.3775, a swing low from early March, and then by the double-bottom of 1.3670 mentioned earlier. Breaching that level would open the door to 1.3565.

Resistance awaits at 1.3880, where the 50-day SMA hits the price. The next cap is 1.3925, which held GBP/USD down earlier this month. The 1.4010 level is critical resistance, and the next noteworthy upside target is only 1.4140.

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GBP/USD sentiment

The last week of April is when America’s economic boom – and fears of inflation – may spark the strongest reactions, potentially causing the dollar to storm the board. The Fed would need to work hard to deny greenback bulls their rally.

The FXStreet Forecast Poll shows that experts are bullish in the short term, are hesitant about the medium term, and bullish with a higher target later down the line. It seems that the narrower range-trading has convinced those surveyed that movements will likely be more limited going forward.

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