The Pound Sterling (GBP) is influenced by the broader performance of the US Dollar, per market analysis. The RICS House Price Index fell to 11 in February, below the forecast of 20, due to rising uncertainty and decreased confidence among consumers.
The Bank of England’s cautious easing approach may help the GBP regain value against the Euro, with the exchange rate stabilising around 0.8450 after recent gains in early March. Current trends suggest support for the GBP may emerge around 1.2910, with resistance at 1.30, followed by potential movement towards 1.3125/50.
Impact Of Us Dollar Performance
The British Pound’s movement is largely tied to how the US Dollar performs, as broader market conditions dictate. A weaker reading in the RICS House Price Index, which dropped to 11 in February, suggests that market sentiment is taking a hit. This figure missed expectations of 20, implying households and buyers are feeling cautious, possibly holding back on spending due to an uncertain climate.
At the Bank of England, policymakers have been careful in their approach towards easing monetary policy. This has seemingly provided support for the Pound against the Euro, with the exchange rate settling around 0.8450. This follows the rally seen in early March, but we are keeping an eye on whether this stability holds or if further drivers push the market in either direction.
Key Support And Resistance Levels
Those watching price levels will see possible support forming near 1.2910. If that level holds, we are likely looking at resistance around 1.30. Should momentum pick up, the next area of interest would be around 1.3125 to 1.3150. Traders may want to assess whether these levels become inflection points in the coming weeks, particularly with external factors shaping short-term price action.
