GBPUSD | Perspective for the new week | Follow-upWelcome, traders, to another exciting episode of my weekly price action-based technical analysis series, dedicated to unraveling the intricacies of the GBPUSD market.
The Bank of England (BoE) gears up for its 15th consecutive interest rate hike on September 21st. Join us as we dissect the implications of this development on price action!
August witnessed a notable surge in the British public's expectations for medium to long-term inflation. The BoE, confronting the highest inflation rate among leading global economies, has set the stage for yet another rate hike. However, the anticipation has stirred a cauldron of mixed reactions. Recent surveys have hinted at a softening outlook for inflation, further fueled by Governor Andrew Bailey's remark that the rate peak is now 'much nearer.'
Throughout the second half of the previous week, the pound oscillated just above a three-month low, eventually finding equilibrium around the $1.24500 territory as the week drew to a close. The brewing uncertainties, coupled with signs of a jobs market slowdown in Britain and an impressive dollar rally, have driven the pound to a 5% decline against the U.S. dollar since mid-July.
With the BoE's next interest rate decision looming on September 21st, traders are keeping a close watch. Derivatives markets indicate a 73% probability of a 25 bps rate hike, while a 27% chance exists that rates will remain steady at the current 5.25% level.
How will these prevailing sentiments sculpt the terrain of this market in the week ahead?
GBPUSD Technical Analysis:
Will the pound find solid support at the $1.24500 zone, or are we heading towards a potential breakdown and a possible sell-off? The stakes are high, and we're on the edge of our seats!
The spotlight is on high-impact economic events from both the UK and US dockets for clues. Brace yourselves as the anticipation and the actual events may trigger sharp price movements that could present incredible trading opportunities.
In this video, we've analyzed the Daily and 4-hour timeframes, exploring bullish and bearish sentiments to uncover the most promising trades for the week ahead. We've delved into key levels, trendlines, and support/resistance points, unveiling essential insights into the current market structure.
Keep a close eye on that critical confluence at $1.24500. It's a decisive moment where both sellers and buyers are vying for control, and how the market reacts here will set the course for GBPUSD in the upcoming days.
Stay connected and join the conversation in the comment section to stay updated on the latest developments. Thank you for tuning in, and get ready for more enlightening insights into GBPUSD in our upcoming content. Buckle up for a thrilling journey ahead! Happy trading!
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
