On Wednesday, the Federal Reserve, as widely anticipated by investors, held its benchmark interest rate within the 5.25%-5.50% range—the highest level in 22 years. The accompanying Summary of Economic Projections disclosed a notable shift in the central bank's outlook. Now, the Fed foresees 75 basis points of rate cuts in 2024, exceeding the September projection by one additional rate cut. This shift in stance is contributing to the weakening of the US dollar over other currencies such as GBP.
Now, let's delve deeper into the technical analysis of GBPUSD
The GBPUSD exhibited an assertive recovery as it bounced off the dynamic support line represented by the EMA 200, marked by a robust bullish Marubozu candlestick. Subsequently, the breakout from both the falling wedge pattern and a prominent resistance zone strongly suggests the persistence of the bullish trajectory.
Adding to the positive outlook, the momentum indicator recently formed a golden cross, underscoring the potential for an upward surge toward the target region. These collective indicators paint a compelling picture, signaling a noteworthy upside movement to the designated target area—a prospect worth considering for fellow traders navigating current market dynamics.
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 FX:GBPUSD ."
Please support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below!
Comment
⋅
Yup, it hit the first target impulsively as we expect it to be
Comment
⋅
Forming a falling wedge, will it continue its bull run?
Comment
⋅
Clearly a breakout, confirming a potential bullish movement
Trade closed: target reached
⋅
Finally Reached the second target. Happy New Year Guys :)