GBPUSD Weekly Outlook: New perspective for the week | Follow-up
Updated
The GBPUSD surged to a new annual high of 1.2850 as Bank of England (BoE) policymakers prepare for a potential interest rate hike. Meanwhile, the U.S. Federal Reserve (Fed) decided to hold off on an interest rate increase, indicating that the tightening phase is still ongoing. The Pound Sterling remains optimistic as discussions about a pause in the BoE's rate-hike policy continue.
Despite the Fed's neutral interest rate decision, the Pound Sterling continued to strengthen amid concerns about a potential recession in the United States. This positive market sentiment is partly due to the relatively weak performance of the U.S. Dollar Index (DXY). BoE Governor Andrew Bailey is confident that inflation will ease, but it is expected to remain high due to labor shortages and elevated food inflation.
Additionally, the Pound Sterling's trajectory will be influenced by the upcoming announcements of the consumer price index and the interest rate decision. Based on the latest economic developments, there is a general consensus that the Bank of England will further raise interest rates to combat stubborn inflation in the United Kingdom.
In our video, we conducted a comprehensive analysis of the GBPUSD's bullish and bearish sentiment, focusing on price action-based technical analysis of support and resistance levels within the 4-hour timeframe. We discussed how these levels can help identify potential trading opportunities in the coming week, providing insights and analysis on the GBPUSD chart. It is worth noting that we highlighted a range between 1.28500 and 1.27700, and the market participants' reaction to this zone at the beginning of the week may significantly impact the direction of price action in the upcoming week. Stay connected to this channel and stay tuned for updates in the comment section to stay informed.
Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.
It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.
I do not guarantee the accuracy of the information provided and shall not be held liable for any loss or damage that may arise directly or indirectly from the content or the receipt of any instructions or notifications related to it.
Please note that past performance is not necessarily indicative of future results.
Despite the Fed's neutral interest rate decision, the Pound Sterling continued to strengthen amid concerns about a potential recession in the United States. This positive market sentiment is partly due to the relatively weak performance of the U.S. Dollar Index (DXY). BoE Governor Andrew Bailey is confident that inflation will ease, but it is expected to remain high due to labor shortages and elevated food inflation.
Additionally, the Pound Sterling's trajectory will be influenced by the upcoming announcements of the consumer price index and the interest rate decision. Based on the latest economic developments, there is a general consensus that the Bank of England will further raise interest rates to combat stubborn inflation in the United Kingdom.
In our video, we conducted a comprehensive analysis of the GBPUSD's bullish and bearish sentiment, focusing on price action-based technical analysis of support and resistance levels within the 4-hour timeframe. We discussed how these levels can help identify potential trading opportunities in the coming week, providing insights and analysis on the GBPUSD chart. It is worth noting that we highlighted a range between 1.28500 and 1.27700, and the market participants' reaction to this zone at the beginning of the week may significantly impact the direction of price action in the upcoming week. Stay connected to this channel and stay tuned for updates in the comment section to stay informed.
Disclaimer:
Trading on margin in the foreign exchange market (including commodities, CFDs, stocks, etc.) carries a high level of risk and may not be suitable for all investors. The content of this speculation (including all data) is provided by me for educational and informational purposes only to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not accept any responsibility for its accuracy.
It is important that you carefully consider your investment experience, financial situation, investment objectives, and risk tolerance level, and seek advice from an independent financial advisor to assess the suitability of your situation before making any investment.
I do not guarantee the accuracy of the information provided and shall not be held liable for any loss or damage that may arise directly or indirectly from the content or the receipt of any instructions or notifications related to it.
Please note that past performance is not necessarily indicative of future results.
Note
#GBPUSDCurrently, the price action is still confined within a range, so we need to exercise patience and wait for a signal in the form of either a breakout or breakdown before considering opening a position for the week and considering the continued selling pressure below the key level at the 1.28500; the potential of selling opportunities is very likely. We will delve into this topic further during our upcoming live session this morning.
Good Morning
Trade active
The sell-stop order has been triggered, and it's important to take note that the newly identified descending trendline will serve as our benchmark to guide trading activities for today.Trade active
UPDATETrade active
We currently have two positions open, and it is advisable to secure the sell positions while we exercise patience and await the next course of action.Trade active
UPDATEWe currently have a total of 56 pips in profit from two sell positions. It is crucial to secure these positions to safeguard the gains.
Trade active
The emergence of buying pressure above the support line at $1.27700, after multiple unsuccessful attempts by sellers to breach this level, indicates a potential bullish momentum for today. Therefore, if there is a breakout or retest of the descending trendline and the $1.28020 level, it would present favorable buying opportunities at this point.Good Morning
Trade active
Secure sell positionTrade active
Secure sell positionTrade closed manually
As U.K. inflation displayed limited signs of alleviation, with the May CPI remaining steady at 8.7% year-on-year, all selling positions were liquidated as buying pressure resumed. Today, we have a fresh ascending trendline to steer our trading activities todayGood Morning
Trade active
Secure sell positionTrade active
The resumption of selling pressure is observed below the 1.27700 level once again. If there is any existing sell position, it is advisable to secure it at this point. An update will be provided shortly.Good Morning
Trade active
Waiting for breakdown/retest of 1.27400 level on the lower time frame for selling opportunitiesTrade closed manually
The selling position has been closed, resulting in a modest profit. We will now exercise patience as we await the maturation of new structures while keeping our attention centered on the range between 1.27400 and 1.27000. The descending line will serve as a reference point to guide our trading activities for today.Good Morning
Trade smart. Trade consciously
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