Looking at GBP/USD ahead of inflation and BOE
We have some important events on the horizon for the British Pound (Sterling). Tomorrow, we'll receive the latest inflation numbers, followed by the Bank of England (BOE) meeting on Thursday.
In terms of inflation, it's expected to stay elevated due to higher petrol prices. Additionally, there's an anticipation of another 25-basis-point interest rate hike during the BOE meeting on Thursday.
There's a prevailing concern that these actions might further harm the already fragile economic growth, and as a result, Sterling is likely to face continued downward pressure.
In the short term, we can look at support levels around 1.2205, the 55-week moving average. If Sterling fails to hold this level, the next targets would be the 1.2080 Fibonacci level and the March low of 1.1802.
It's worth noting that the market has recently struggled to break free from its long-term downtrend, dating back to 2007. This suggests that Sterling is likely to remain under pressure longer term.
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The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
In terms of inflation, it's expected to stay elevated due to higher petrol prices. Additionally, there's an anticipation of another 25-basis-point interest rate hike during the BOE meeting on Thursday.
There's a prevailing concern that these actions might further harm the already fragile economic growth, and as a result, Sterling is likely to face continued downward pressure.
In the short term, we can look at support levels around 1.2205, the 55-week moving average. If Sterling fails to hold this level, the next targets would be the 1.2080 Fibonacci level and the March low of 1.1802.
It's worth noting that the market has recently struggled to break free from its long-term downtrend, dating back to 2007. This suggests that Sterling is likely to remain under pressure longer term.
Disclaimer:
The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
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