The Bank of England's main interest rate is expected to peak at 4.75% in August, higher than the current 4.0%, and higher than the expected peak of around 4.0% a month ago. With support from this rate hike expectation, investors believe that the interest rate differential between the pound and the euro and the US dollar will not widen too much, and the pound may not be excessively impacted and fall into an extremely weak position.
From a technical perspective, the daily chart is oscillating around the lower bound of the range of 1.1914-1.2180 in February, lacking direction. The 4-hour chart is volatile, with support at 1.1920 and resistance at 1.2140. On the hourly chart, the downtrend stabilizes above the previous low of 1.1920, forming an effective support for the "W" double bottom, with a further rebound tendency. Previously, we entered long positions near 1.1920, and we have made short-term profits. There will be opportunities for re-entry during the subsequent adjustment.
Personal operational recommendations: Enter long positions at 1.1920-1.1950, with the first profit-taking target at 1.2150 and the second profit-taking target at 1.2270.
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