GBPUSD is Going Green—Bullish Interest Rate Play

Jan Aldrin Laruscain

BUY GBPUSD

Close Time

CLOSED

1.22107

Entry Price

1.24432

1.21806

1.33253 +0.00123 +0.09%

30.1

Pips

Loss

1.21806

1.21805

Exit Price

1.22107

Entry Price

1.24432

Fundamentals

GBPUSD has certainly dominated the headlines with both currencies in an apparent rat race to beat past rising inflation. Kicking things off with the US Dollar, the recent FOMC has certainly made buying interest for the US Dollar softer—but nevertheless, still pushing strong with the recent .50% basis point hike. On this note, the Pound may have edged out USD this time—as it has raised rates by 3.50% from the previous .50%. With

Technicals

Following a 3-month long bull rally, the GBPUSD has finally came back to the nearest monthly turncoat resistance indicative of a classic break and retest scenario. It is to be expected for the month of December to end green following the diminishing volume the financial markets will experience as financial institutions start closing their books.

GBPUSD is Going Green—Bullish Interest Rate Play_1

Narrowing down to the daily timeframe, price has certainly flagged bullish intention as it was able to break previous pivot high—and has now retraced back to the 38.2% level. In the near term, the team is expecting price to at least tap into the 50% to the 61.8% retracement level before it starts the next bullish impulse.

GBPUSD is Going Green—Bullish Interest Rate Play_2

Going further down to our entry timeframe, the team is recommending to go long or set a buy limit at 1.22628 and a stop loss at 1.21806. We are also setting our take profit along the levels of 1.24432.

GBPUSD is Going Green—Bullish Interest Rate Play_3

BUY LIMIT/ENTRY = 1.22628

STOP LOSS = 1.21806

TAKE PROFIT = 1.24432

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