GBPUSD: Bullish Momentum as the Market Anticipate Fed Rate Cuts
Updated
Inflation & Interest Rate
According to the Personal Consumption Expenditure (PCE) metric, inflation declined from 2.9% in October to 2.6% in November. Forecasts suggest a projected 2.4% inflation rate in 2024, attributed to a more stringent monetary policy and decreased international commodity prices. Notably, 17 out of 19 Federal Reserve officials anticipate a lower policy rate by the end of 2024, with the median projection indicating a three-quarters of a percentage point decrease from the current range. The prospect of reduced interest rates tends to discourage foreign investment, thereby decreasing the currency's relative value. Consequently, we anticipate a weakening dollar and a bullish outlook for
GBPUSD .
Technical Analysis
On January 5, 2023, GBPUSD experienced a rebound precisely at the EMA200 Line and the bullish trendline. Along the bullish trendline, a swing low was formed, accompanied by a bullish Marubozu candlestick. Notably, the price broke out of the descending broadening wedge, signaling a potential continuation of the prevailing trend. Furthermore, the MACD indicator exhibited a golden cross, indicative of robust bullish momentum and suggesting a trajectory toward the designated target area.
It is essential to note that the analysis will no longer hold validity once the target/support area is reached.
Disclaimer:
"Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on GBPUSD."
Please support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below!
According to the Personal Consumption Expenditure (PCE) metric, inflation declined from 2.9% in October to 2.6% in November. Forecasts suggest a projected 2.4% inflation rate in 2024, attributed to a more stringent monetary policy and decreased international commodity prices. Notably, 17 out of 19 Federal Reserve officials anticipate a lower policy rate by the end of 2024, with the median projection indicating a three-quarters of a percentage point decrease from the current range. The prospect of reduced interest rates tends to discourage foreign investment, thereby decreasing the currency's relative value. Consequently, we anticipate a weakening dollar and a bullish outlook for
GBPUSD .Technical Analysis
On January 5, 2023, GBPUSD experienced a rebound precisely at the EMA200 Line and the bullish trendline. Along the bullish trendline, a swing low was formed, accompanied by a bullish Marubozu candlestick. Notably, the price broke out of the descending broadening wedge, signaling a potential continuation of the prevailing trend. Furthermore, the MACD indicator exhibited a golden cross, indicative of robust bullish momentum and suggesting a trajectory toward the designated target area.
It is essential to note that the analysis will no longer hold validity once the target/support area is reached.
Disclaimer:
"Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on GBPUSD."
Please support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below!
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