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GBP/USD Forex Signal – April 22, 2025
Market Overview
The British Pound continues to show resilience against the U.S. Dollar, with GBP/USD hovering near 1.2680 on April 22, 2025. The pair is benefiting from a broad-based USD sell-off and recent better-than-expected economic data from the UK, including retail sales and services PMI figures.
Traders are closely watching commentary from the Bank of England (BoE) as expectations for a delayed rate cut continue to support the Pound.
Trade Setup Summary
- Currency Pair: GBP/USD
- Signal Type: Buy
- Entry Price: 1.2680
- Take Profit: 1.2750 (Primary Target), 1.2840 (Extended Target)
- Stop Loss: 1.2590
- Time Frame: 1–2 days
Fundamental Analysis
UK Economic Strength
- UK Retail Sales rose 0.7% MoM, beating the forecast of 0.4%.
- Services PMI printed 53.4, showing ongoing expansion.
- BoE members hinted that inflation remains sticky, delaying rate cut talks.
U.S. Dollar Weakness
- U.S. Existing Home Sales dropped by 4.2%, adding to the bearish sentiment.
- Fed officials remain cautious about the job market and wage inflation.
This divergence in economic momentum favors continued GBP strength against the Dollar.
Technical Analysis
Moving Averages
- Price trades comfortably above the 50- and 100-period SMAs.
- A bullish crossover occurred last week and continues to support trend direction.
RSI
- RSI sits at 63 on the 4H chart, not yet overbought and showing healthy momentum.
MACD
- MACD histogram is expanding, indicating growing bullish pressure.
Price Structure
- The pair is forming higher highs and higher lows.
- A bullish breakout from a consolidation range between 1.2600–1.2670 confirms trend continuation.
Fibonacci Levels
- 1.2680 marks a breakout above the 50% Fibonacci retracement from the March high.
- Next key resistance lies at the 61.8% level near 1.2750.
Entry Strategy – April 22, 2025
📌 Buy GBP/USD at: 1.2680
🎯 Take Profit 1: 1.2750
🎯 Take Profit 2: 1.2840
🛑 Stop Loss: 1.2590
Wait for a 1H close above 1.2685 or bullish candlestick confirmation near the breakout zone.
Risk Management Tips
- Limit trade risk to no more than 2%.
- Move stop-loss to breakeven once price surpasses 1.2710.
- Watch BoE commentary and U.S. data later in the day.
Market Sentiment
- GBP positioning remains net long among institutional traders.
- Retail sentiment slightly bearish – could fuel further upside.
This trade complements the EUR/USD bullish setup also published today.
External Resources
Conclusion
The GBP/USD signal for April 22, 2025 supports a continuation of the bullish trend, both technically and fundamentally. Entry at 1.2680 offers a well-balanced risk-reward ratio with targets at 1.2750 and 1.2840.
