The GBP edged up 0.51% last Friday to close at 1.2261. Last week's low was close to a 2-year low of 1.2075, falling for the fourth week in a row. Meanwhile, the UK economy contracted by 0.1% in March, making the first quarter's growth rate 0.8% lower than expected, according to data from the Office for National Statistics last Friday. Unfortunately, at a time when the UK economy is under threat of recession, stagnation and inflation have also led to stagflation. On May 5, the Bank of England said that there might be a recession next year, "after the conflict between Russia and Ukraine, the global inflation pressure has increased sharply, which has led to a substantial deterioration in the global and UK GDP growth prospects." Fears of a recession have made the GBP to a two-year low. However, there are more problems for the UK. The combination of rising energy prices, a depreciating GBP, sluggish economic growth, a weak household economy, trade restrictions in Russia and soaring headline inflation has put the UK economy in a dangerous environment that could indicate the UK. is on the brink of a severe recession. In other words, market concerns about the UK economy have put the GBP under pressure overall.

In the 1W timeframe, the GBP is close to the long-short watershed. If it falls below the trend line, it will open a new round of downtrend. Conversely, it will open a new round of uptrend if taking it as the support. This is where attention should be paid to trading the GBP in the near future. The GBP price is currently supported by the golden mean at 38.2 (1.2218), with key support below at 1.2165.

In the 4H timeframe, if the recent trend of the GBP is divided, it is very obvious to see the three fluctuation ranges of the GBP in the process of downward fluctuation. The high point during the Asian session was suppressed by the top of the 1.2276-1.2145 fluctuation range. Considering Monday's trend has always been flat, attempts could be made to buy low and sell high. In terms of the indicators, the fast stochastic indicator accelerated, pulling away from the slow stochastic indicator and showing that the GBP will rise in the short term; In the Ichimoku chart, the price of the GBP appears to break through the turning line, there are signs of convergence to the baseline or even a breakthrough, again indicating that the GBP will rise in the short term. If so, it is recommended to go short after the GBP's rise.

Support: 1.22180, 1.21929, 1.21650

Resistance: 1.22500, 1.22760, 1.23037