JinDao_Tai

GBP/USD Outlook (16 May 2022)

Long
FX:GBPUSD   British Pound / U.S. Dollar
Could we see limited downside on the GBP/USD?

This week, there are important economic data releases for the GBP/USD, which could shift directional bias of the GBP/USD.

Monetary Policy Report Hearings (Monday) and if price fails to break below 1.21, could for a stong support bases for price to bounce higher.

The GBP CPI Y/Y on Wednesday could be released at 9.1%. This would mean that inflation in the UK is still running hot and very high. Which could in turn, spur the BoE towards further policy adjustment, especially towards a more aggressive rate hike regime.

This could result in the GBP/USD finding further upside from 1.23

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