GBP renewed its highs. Overview for 04.05.2023

The GBPJPY pair continued the profit gaining, to notice forming correctional bearish rebound and approach the additional support at 169.00, while the contradiction between the major indicators allows us to expect surrendering to the domination of the sideways bias until gathering the required additional positive momentum to renew the positive action and achieve some gains by rallying towards 170.60 and 171.40 levels.

The British pound rose noticeably against the US dollar. The current GBPUSD quote is 1.2565.

The pound did not have the best of times at the beginning of May, but it should be admitted that it has already regained all the previous losses. The pair received support from the declining USD after the May meeting of the US Federal Reserve System.

There is nothing unusual in this. The pound is sensitive to the dollar's behaviour, and investors who have no other arguments, use what they do have most efficiently.

On Thursday, Britain will present the statistics of mortgage approvals, the new consumer lending, and the PMI in services. The PMI in the construction sector is scheduled for Friday. While all this is significant, currently, it is the dollar's trajectory that sets the mood for the pound.