The pound rebounded as scheduled, can the bulls recover?

On Wednesday (March 15), GBP/USD continued to fall by 0.85% to close at USD1.2056.The UBS incident has caused the market to worry about the state of the European banking system, because the impact of the collapse of Silicon Valley Bank, which is a major customer of technology companies in the United States, is accelerating.Credit Suisse's share price plunged by more than 30% at one point, after its largest investor said it could not provide the bank with more financial assistance.The stock's plunge led to a decline in the broader European banking stock index, triggering demand for safe-haven dollars and forcing investors to avoid high-risk currencies such as the British pound.However, the market believes that the eurozone market may be hit first, while the British market is slightly protected, so at this stage, the performance of the pound is slightly stronger than that of the euro.Subsequently, British Chancellor of the Exchequer Hunt announced a fiscal plan. Fiscal measures for this year and next two years will cost 94 billion pounds, demonstrating the British government's determination to boost economic growth and avoid recession.This has helped limit the decline of the pound to a certain extent.

On the trend of GBP/USD, it was mentioned in the article yesterday that if the 1.201 position can be supported, it is possible to carry out a short-cycle restorative rebound on this basis.It is currently trading near the level of 1.211.From this point of view, there is still strong support near the 1.201 level below, but the current trend is still volatile and the trend is not clear.The overall volatility range is still limited to between 1.1930-1.22.

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