GBP/USD Slips and Dips: A Technical Reflection Amid Inflation
📊 Current Landscape:
GBP/USD has seen a whirlwind of activity, recently soaring then slipping back as UK inflation data came into the spotlight. The UK CPI cooled more than expected to 4.6% YoY, leading to speculation that the Bank of England may pause its rate hice. This fundamental change has provided a bearish tilt to the pair as it fell away from the 1.25 lece.
🔍 Technical Outlook:
Your chart shows GBP/USD retracting from recent highs, which coincides with the technical resistance at the psychological 1.25 level. The currency pair had surged previously, powered by a sharp decline in the U.S. dollar following the U.S. CPI rerce. However, technicals suggest a bullish undertone as GBP/USD rebounded off significant moving averages, indicating underlying derce.
💱 Fundamental vs. Technical:
While the fundamental news points towards potential dovish shifts in monetary policy, the technical setup on your chart suggests that GBP/USD could still have the momentum to test higher levels if it maintains above the crucial moving average supports.
🎯 Key Levels to Watch:
Resistance: The 1.25 mark is the immediate psychological barrier. Overcoming this could reignite bullish sentiments.
Support: Watch the moving average lines for potential bounce-back zones, as indicated by the rebound off the ource.
🔄 Market Sentiment:
The recent pullback in the GBP/USD could be an opportunity for bulls if the pair stays supported above the key technical levels. However, the bearish fundamental news might lead to cautious trading, with potential for further dips if the BoE signals a pause in rate hikes.
GBP/USD has seen a whirlwind of activity, recently soaring then slipping back as UK inflation data came into the spotlight. The UK CPI cooled more than expected to 4.6% YoY, leading to speculation that the Bank of England may pause its rate hice. This fundamental change has provided a bearish tilt to the pair as it fell away from the 1.25 lece.
🔍 Technical Outlook:
Your chart shows GBP/USD retracting from recent highs, which coincides with the technical resistance at the psychological 1.25 level. The currency pair had surged previously, powered by a sharp decline in the U.S. dollar following the U.S. CPI rerce. However, technicals suggest a bullish undertone as GBP/USD rebounded off significant moving averages, indicating underlying derce.
💱 Fundamental vs. Technical:
While the fundamental news points towards potential dovish shifts in monetary policy, the technical setup on your chart suggests that GBP/USD could still have the momentum to test higher levels if it maintains above the crucial moving average supports.
🎯 Key Levels to Watch:
Resistance: The 1.25 mark is the immediate psychological barrier. Overcoming this could reignite bullish sentiments.
Support: Watch the moving average lines for potential bounce-back zones, as indicated by the rebound off the ource.
🔄 Market Sentiment:
The recent pullback in the GBP/USD could be an opportunity for bulls if the pair stays supported above the key technical levels. However, the bearish fundamental news might lead to cautious trading, with potential for further dips if the BoE signals a pause in rate hikes.
Note
Layered with the following:SL: 1.23162
TP1: 1.24624
TP2: 1.25355
TP3: 1.26086
Trade closed manually
Closed first trade : -20pips2nd Trade: +10pips
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