GBP/USD Possible Bullish Scenario
Updated
Fundamental Analysis:
the fundamental analysis for GBP/USD suggests that BOE is likely to adopt a hawkish stance on interest rates, following similar actions by Feds and ECB. This response is driven by high inflation in the region, which may be further exacerbated by political tensions, especially in the food sector. However, despite this potential inflation concern, the US economy is currently performing better than the UK's, with lower unemployment rates, lower inflation, and a higher GDP. These economic indicators favor the US dollar and could influence the GBP/USD exchange rate in its favor..
Technical Analysis:
we have observed significant bearish movements in GBP following the ECB conference. Nevertheless, the price managed to find substantial support levels, suggesting a potential rebound. With a small correction, the price of GBP could move upward toward my clearly defined target.
Targets:1.29900, 1.30300...
"Stay disciplined and patient"
"Keep analysis simple and concise"
"Have a risk management strategy"
"Trade with a clear mind"
GBPUSD
the fundamental analysis for GBP/USD suggests that BOE is likely to adopt a hawkish stance on interest rates, following similar actions by Feds and ECB. This response is driven by high inflation in the region, which may be further exacerbated by political tensions, especially in the food sector. However, despite this potential inflation concern, the US economy is currently performing better than the UK's, with lower unemployment rates, lower inflation, and a higher GDP. These economic indicators favor the US dollar and could influence the GBP/USD exchange rate in its favor..
Technical Analysis:
we have observed significant bearish movements in GBP following the ECB conference. Nevertheless, the price managed to find substantial support levels, suggesting a potential rebound. With a small correction, the price of GBP could move upward toward my clearly defined target.
Targets:1.29900, 1.30300...
"Stay disciplined and patient"
"Keep analysis simple and concise"
"Have a risk management strategy"
"Trade with a clear mind"
GBPUSD Trade active
Note
I believe that if the Bank of England (BOE) becomes hawkish, the demand for GBP can increase. This is the last chance for a bullish scenario; if this does not happen, this trade will no longer be valid.Note
After the release of a negative Non-Farm Payrolls (NFP) report, I anticipate that the USD will further weaken against other major currencies due to the prevailing concerns regarding its status as a reliable and trustworthy currency, as indicated in the financial analysis found at tradingview.com/x/sEUDAJKi/.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.