Market Outlook
GBPUSD slumped, more losses ahead? - Zeal Capital Market

GBPUSD slumped, more losses ahead?

08-03-2023 06:45

“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.

Technical Analysis

GBPUSD slumped, more losses ahead? - Zeal Capital Market

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

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.

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