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104.193

0.31%

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1824.16

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GBPUSD
1.22520

0.08%

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0.10%

USNDAQ100
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      GBPUSD: GBP Rebounds and Tries to Reach 1.2470

      Summary:

      Saunders' speech puts pressure on the GBP. But persistent and high inflation may force the Bank of England to take a more hawkish stance, which may raise market expectations.

      Buy GBPUSD CLOSED
      EXP

      1.23037

      ENTRY PRICE

      1.24700

      TGT PRICE

      1.22390

      SL PRICE

      1.22520 -0.00097 -0.08%

      647

      Points

      Loss

      1.22390

      SL PRICE

      TARGET UNREACHED

      1.22389

      CLOSING PRICE

      1.23037

      ENTRY PRICE

      1.24700

      TGT PRICE

      Fundamentals

      The GBP closed a bit lower yesterday. The US dollar index fell slightly from the high level, pushing up the GBP in the European session. But the GBP was finally declined as affected by the speech of Saunders, a member of the Bank of England. While Saunders said he prefers a relatively quick shift to a more neutral monetary policy stance, he also believes further monetary policy tightening may still be appropriate in the coming months. However, as the Bank of England has raised interest rates by 100 basis points since December last year, the market has long been accustomed to the tightening attitude of the Bank of England. This remark has a limited boost to the GBP.
      At the same time, Saunders also revealed that the Bank of England expects the CPI (May 18th) to be around 9% in April and will rise to more than 10% later this year. He also demonstrated that inflationary pressures had been rising in recent quarters, with obvious trends in capacity constraints, longer-term inflation expectations, base wage growth, and services inflation. This sparked the concerns about inflation in the UK, weighing on the GPB. However, judging from Saunders' speech, the Bank of England has a more consistent attitude toward curbing inflation through monetary policy. Persistent and high inflation may force the Bank of England to take a more hawkish stance, which may enhance market expectations at that time.

      Technical Analysis

      In the weekly chart, the support for the GBP is the Fibonacci retracement of 23.6% (1.2297) and the trend line (1.2238). This support range can be regarded as strong support. If it falls below this area, the GBP will start a new round of decline.
      GBPUSD: GBP Rebounds and Tries to Reach 1.2470_1
      In the 4-hour chart, the resistance level for the GBP is 1.2384. This line has blocked the rise of the GBP several times since May 6 and can be regarded as a strong resistance level in the short term. If this line as the bottom of the historical oscillation range (1.2620-1.2470) is broken, the GBP is expected to rise to 1.2470. The GPB has corrected in this range for 7 consecutive trading days. The support level is 1.2276, which is the bottom of the current narrow oscillation range (1.2384-1.2276).
      In terms of indicators, both the Ichimoku Cloud and DMI show a clear upward trend. But considering the performance of the two in the 1-hour chart, it is recommended to wait for the GBP to fall before entering the market and going long.

      GBPUSD: GBP Rebounds and Tries to Reach 1.2470_2

      Trading Recommendations

      Trading Direction: Long
      Entry Price: 1.23037
      Target Price: 1.24700
      Stop Loss: 1.2239
      Support: 1.23037/1.2276/1.2239
      Resistance: 1.2384/1.2427/1.2470
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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      Jason

      analyst

      I have an in-depth study of fundamentals, especiaslly for the US dollar market. I'm good at short and medium term trading by virtue of my profound financial theoretical knowledge and extensive practical experience.

      Rank

      4

      Articles

      96

      Win Rate

      64.00%

      P/L Ratio

      1.28

      Most Traded Assets

      USDX、EURUSD、GBPUSD

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      EXPIRED
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