GBPUSD slumped, more losses ahead?
“Testimony from Fed suggests more rate hikes due to stubbornly high inflation in the US.”
Greenback hits three months high against other major currencies after Federal Reserve Chairman Jerome Powell provided his testimony. During the session, Powell commented that Fed may raise interest rates more than expected and warned that bringing back inflation to 2% will take a long time. In addition, he also noted that they are prepared to initiate larger rate hike if upcoming data suggests the need to increase overall price controls. For the time being, investors will pay close attention upon updated “dot plot” to determine the interest rate ceiling.
GBPUSD, H4: Overall bias is heavily skewed towards the downside after GBPUSD closed below the 200-MA line and support level of 1.1860. MACD which shows a pickup in bearish momentum suggests the pair to extend its losses, towards the direction of 1.1345.
Resistance level: 1.1860, 1.2425
Support level: 1.1345, 1.1095
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