GBPUSD

We are on the last trading day of the week, following the decisions of four major central banks (Fed, BoE, BoJ, and SNB). The US Dollar has strengthened somewhat against the Euro and the Pound, while pullbacks are observed in the currency pairs. Whether these pullbacks will turn into a rally will be determined by macroeconomic data and the messages from central bank officials.

The classic Dollar Index is witnessing a struggle between short-term sellers and medium-term buyers due to its recent volatility. Price movements outside the critical 200-week average (102.35) for medium-term buyers and the significant 34 and 233-day averages (105.10) for short-term sellers will be decisive for market direction. The proximity to the 200-week average should be closely monitored for its impact on the EURUSD and GBPUSD pairs.