Inflation in the UK is currently at 10.1% with the market expectation that the CPI could reach 18% by early 2023.
With record high inflation the Bank of England has indicated that it is likely to continue hiking rates to combat inflation growth.
However, as GDP in the UK enters into negative territory at -0.6%, further rate increases would increase the risk of economic stagflation.
Expect to see the GBPUSD trade with significant volatility towards the downside.
As price fails to break above the 1.1750 resistance level, look for the GBPUSD to close below near term support of 1.1652 to signal the start of more downside.
The GBPUSD could reach 1.1550 before a rebound, with the 1.14 price level (last reached in march 2020) the historic low support level
With record high inflation the Bank of England has indicated that it is likely to continue hiking rates to combat inflation growth.
However, as GDP in the UK enters into negative territory at -0.6%, further rate increases would increase the risk of economic stagflation.
Expect to see the GBPUSD trade with significant volatility towards the downside.
As price fails to break above the 1.1750 resistance level, look for the GBPUSD to close below near term support of 1.1652 to signal the start of more downside.
The GBPUSD could reach 1.1550 before a rebound, with the 1.14 price level (last reached in march 2020) the historic low support level
