GBP/USD Analysis : Promising Outlook
Updated
Fundamental analysis:
The recent release of CPI news has had a significant impact on the GBPUSD pair, resulting in a notable distribution sentiment among investors. However, despite this distribution, inflation remains at a high rate of 8.7% at UK. Given this, I believe the Bank of England (BOE) may adopt a more hawkish approach to combat deflation. Currently, interest rates are at 5%, and the Balance of Trade is still in negative territory. The main reason for the strength of the GBP against the USD is the market's significant reaction to the CPI news affecting the USD.
Technical Analysis: the price has exhibited a strong bullish momentum following the CPI news. However, it is likely that the price may experience a retracement to premium or discount zones, which could lead to further continuation of the established trend.
Targets for retracements 1.30, 1.29400 ( consider it with lower risks)
Targets: 1.32, 1.33. 1.34
"Stay disciplined and patient"
"Keep analysis simple and concise"
"Have a risk management strategy"
"Trade with a clear mind"
GBPUSD
previous forecast:
https://www.tradingview.com/chart/GBPUSD/pIGjuX4J-Bullish-GBP-USD-Defies-Rates/
The recent release of CPI news has had a significant impact on the GBPUSD pair, resulting in a notable distribution sentiment among investors. However, despite this distribution, inflation remains at a high rate of 8.7% at UK. Given this, I believe the Bank of England (BOE) may adopt a more hawkish approach to combat deflation. Currently, interest rates are at 5%, and the Balance of Trade is still in negative territory. The main reason for the strength of the GBP against the USD is the market's significant reaction to the CPI news affecting the USD.
Technical Analysis: the price has exhibited a strong bullish momentum following the CPI news. However, it is likely that the price may experience a retracement to premium or discount zones, which could lead to further continuation of the established trend.
Targets for retracements 1.30, 1.29400 ( consider it with lower risks)
Targets: 1.32, 1.33. 1.34
"Stay disciplined and patient"
"Keep analysis simple and concise"
"Have a risk management strategy"
"Trade with a clear mind"
GBPUSD previous forecast:
https://www.tradingview.com/chart/GBPUSD/pIGjuX4J-Bullish-GBP-USD-Defies-Rates/
Note
The targets of the retracement have been reached.
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