Will GBP/USD rebound lasts?
“UK’s inflation hit its highest level in 40 years, tightening looms but expects moderation.”
Pound sterling stages its rebound from lower level, buoyed by recent release of economic data in UK. Yesterday, annual data shows that CPI rose 9.4%, well above consensus of 9.3%. While the number remains at its highest level in 4 decades, it is unlikely to steer the path of policy tightening by Bank of England. BoE is likely to adopt a safer route ahead as Brexit headwinds has yet to subside.
Quick recap of GBPUSD
With regards to long-term structure, the pair is skewed towards the downside.
GBPUSD Weekly Technical Analysis
In weekly perspective, GBPUSD shows some sign of bulls taking over due to strong pullback near 1.1800 threshold.
GBPUSD Daily Technical Analysis
From daily perspective, the pair is expected to propel further upwards. Nonetheless, 1.2300 will remain as the main hurdle for sterling-bears where we expect continuation of long-term structure in mid to long-run.
ORDER: SELL LIMIT
STOP LOSS: 1.2500
Target 1: 1.1860
Target 2: 1.1680
ZFX Analyst’s Comment
For the time being, we expect GBPUSD to experience short-term bull takeover. We would monitor for any breakout near 1.2300 hurdle that could safeguard the bears to regain their momentum in the mid-term.
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 Forex, commodities, stock indices, and share CFDs. Open a trading account with min. USD 50 deposit and download our MT4 trading platform now!