minus academy faq plus academy faq Check in circle Apple Android Home Magnifer Calculator Mail Email Facebook Twitter RSS Linkedin Linkedin hollower Headphones Wechats Instagram Line Mail 2 Phone Phone 2 Minus Plus Arrow right Arrow left (variant 2) Arrow right (variant 2) Brand logo Brand logo not filled Hamburger Flag of the Hong Kong Flag of the US/GB Flag of the US/GB Flag of the US/GB Flag of the China Flag of the China Flag of the China (traditional) Flag of the Taiwan Flag of the Hong Kong Flag of the Spain Flag of the Russia Flag of the France Flag of the German Flag of the Portugal Flag of the Italy Flag of the Poland Flag of the Czech Flag of the Hungary Flag of the Sweden Flag of the Bulgarian Flag of the Finland Flag of the Lithuania Flag of the Denmark Flag of the Croatia Flag of the Estonia Flag of the Norway Flag of the Romania Flag of the United Arab Emirates Flag of the United Arab Emirates Flag of the Indonesia Flag of the Malaysia Flag of the Korea Flag of the Korea Flag of the Samoa Flag of the Vietnam Flag of the Thailand Flag of the Turkey Flag of the Japan Cross Cross large User Arrow down Arrow up Cube Info list Data comunication Clock Slash
Market Outlook
GBPUSD depreciates, will 1.2000 rescue the pair? - Zeal Capital Market

GBPUSD depreciates, will 1.2000 rescue the pair?

05-08-2022 02:23

“Bank of England may slow down policy tightening pace as UK GDP fell during the second quarter.”

Pound sterling pared its gains post Bank of England policy meeting while investors gear up for the release of US Nonfarm Payrolls report. As expected, BoE raised interest rates by 50-basis points to 1.75%, its highest level since 2008. However, the market has fully priced in for the rate hike, prompting profit seeking selloff. In addition, BoE indicated that there is no forward guidance in terms of monetary policy, signaling possibility of policy tightening slowdown.

Quick recap of GBPUSD

Overall structure remains skewed towards the downside as the pair failed to make any substantial recovery.

GBPUSD Weekly Technical Analysis

GBPUSD depreciates, will 1.2000 rescue the pair? - Zeal Capital Market

While MACD shows diminishing upward momentum, the pair failed to push ahead past 1.2300.

GBPUSD Daily Technical Analysis

GBPUSD depreciates, will 1.2000 rescue the pair? - Zeal Capital Market

From daily perspective, the pair retraced from the downward trendline, an indication of takeover by the bear’s market.

Trading Idea

GBPUSD depreciates, will 1.2000 rescue the pair? - Zeal Capital Market

ORDER: SELL STOP

ENTRY: 1.1950

STOP LOSS: 1.2070

Target 1: 1.1815

Target 2: 1.1685

ZFX Analyst’s Comment

The pair has failed to make any substantial recovery for the past few months, reinforcing the view of bearish tilted structure in the long run.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forexcommoditiesstock indices, and share CFDsOpen a trading account with min. USD 50 deposit and download our MT4 trading platform now!