FX.co ★ GBP/US forecast on 31st March

GBP/USD continues to fluctuate above 1.3100 in the second half of the day on Thursday. Although the data from the US showed that the core PCE inflation rose at a slightly softer pace than expected in February, the US Dollar Index stays in positive territory.

GBP/USD faces stiff resistance at 1.3160 (Fibonacci 38.2% retracement of the latest downtrend, 50-period SMA). In case the pair makes a four-hour close above that level and starts using it as support, buyers could show interest. 1.3200 (psychological level, Fibonacci 50% retracement) and 1.3260 (Fibonacci 61.8% retracement) align as next bullish targets.

On the downside, the first support is located at 1.3100 (psychological level, Fibonacci 23.6% retracement) ahead of 1.3050 (static level).

Meanwhile, GBP/USD trades slightly below the 100-period SMA on the four-hour chart and the Relative Strength Index (RSI) indicator edges lower, confirming buyers' hesitancy.