GBPUSD Flat miexd bag
LONG TERM BEARISH
DAILY BEARISH
4H Bearish
2 H Bearish
2H Momentum BEARISH
BoE raises rates by 25 bp, revises inflation, GDP forecasts
here was no surprise as the Bank of England raised rates by 25 basis points, bringing the cash rate to 4.50%, its highest since 2008. This marked the twelfth consecutive hike in the current rate-tightening cycle, underscoring the BoE’s pledge to curb hot inflation. Governor Bailey said after the rate announcement that Bank would “stay the course to make sure that inflation falls all the way back to the 2% target”.
Nobody is expecting that the road to 2% will be easy, with inflation currently in double digits. The BoE remains optimistic that inflation will fall rapidly during the year and will fall to 5% by the end of the year. In February, the BOE predicted 4% inflation by the end of the year. This seems like a tall order but is certainly possible if the rate hikes make themselves felt and cool the economy.
GBP/USD is putting pressure on support at 1.2495. The next support level is 1.2366.
1.2573 and 1.2676 are the next resistance lines.
The GBP/USD pair might then aim to reclaim the 1.2600 round figure and test the 1.2635-1.2640 supply zone. The upward trajectory has the potential to push spot prices towards the 1.2700 mark, which coincides with the top end of the ascending channel.
DAILY BEARISH
4H Bearish
2 H Bearish
2H Momentum BEARISH
BoE raises rates by 25 bp, revises inflation, GDP forecasts
here was no surprise as the Bank of England raised rates by 25 basis points, bringing the cash rate to 4.50%, its highest since 2008. This marked the twelfth consecutive hike in the current rate-tightening cycle, underscoring the BoE’s pledge to curb hot inflation. Governor Bailey said after the rate announcement that Bank would “stay the course to make sure that inflation falls all the way back to the 2% target”.
Nobody is expecting that the road to 2% will be easy, with inflation currently in double digits. The BoE remains optimistic that inflation will fall rapidly during the year and will fall to 5% by the end of the year. In February, the BOE predicted 4% inflation by the end of the year. This seems like a tall order but is certainly possible if the rate hikes make themselves felt and cool the economy.
GBP/USD is putting pressure on support at 1.2495. The next support level is 1.2366.
1.2573 and 1.2676 are the next resistance lines.
The GBP/USD pair might then aim to reclaim the 1.2600 round figure and test the 1.2635-1.2640 supply zone. The upward trajectory has the potential to push spot prices towards the 1.2700 mark, which coincides with the top end of the ascending channel.
Note
GBP FALL DOWNNote
US debt ceiling optimism providing support for GBP.Fed speakers the main attraction for today’s trading day.
GBP/USD eyes 1.2400.
Note
The dollar index steadied around 103.3 on Tuesday, supported by growing expectations that the Federal Reserve will keep interest rates higher for longer, while traders cautiously awaited updates from the debt ceiling negotiations. In the latest central bank commentary, Fed’s Bullard suggested the possibility of raising rates by another half-point this year, while Fed's Kashkari described the decision to pause or hike rates in June as a close call. Markets have scaled back bets on interest rate cuts this year, with rates seen holding at around 4.7% by December. Meanwhile, President Joe Biden and House Speaker Kevin McCarthy signaled cautious optimism that a deal to raise the debt ceiling would be reached, with Treasury Secretary Janet Yellen reaffirming that the US could be at risk of default by June 1.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.