Hawkish BoE! GBP/USD Drops Below 1.34

Summary:

Industry data shows that, due to the ongoing heat wave, a large number of consumers chose to stay indoors, resulting in a 3.4% year-over-year decline in foot traffic at UK stores in June.

SELL GBPUSD

EXP

TRADING

1.33792

Entry Price

1.28000

1.36000

1.33792 -0.00117 -0.09%

0.0

Pips

Flat

1.28000

Exit Price

1.33792

Entry Price

1.36000

Fundamentals

Industry data shows that, due to the ongoing heat wave, a large number of consumers chose to stay indoors, resulting in a 3.4% year-over-year decline in foot traffic at U.K. stores in June. Data jointly released by the British Retail Consortium and Sensormatic indicates that performance varied significantly across different retail sectors, with high streets bearing the brunt of the impact.

In its monetary policy report submitted to Congress last Friday, the Federal Reserve explicitly stated that U.S. inflation “intensified further this spring,” driven by multiple factors including evolving tariff policies, war-related increases in energy costs, and the booming artificial intelligence industry. The report noted that data through May showed the Fed’s preferred measure—the Personal Consumption Expenditures Price Index—remained roughly twice the long-term target of 2%, with price pressures continuing to build since last year and showing no significant signs of abating.

Technical Analysis

On the daily chart, the GBP/USD pair shows Bollinger Bands beginning to narrow, with moving averages flattening out, indicating a potential reversal at any moment. The RSI stands at 54, and market participants are largely adopting a wait-and-see approach. On the four-hour chart, Bollinger Bands are also narrowing, moving averages are flattening, and the upward momentum of the MACD has weakened, suggesting a high probability of another decline. The RSI stands at 48, and market participants are largely adopting a wait-and-see approach. Strategically, look to sell on rallies.

Trading Recommendation

Trading Direction: Sell

Entry Price: 1.338

Target Price: 1.28

Stop-Loss Price: 1.36

Support Levels: 1.32, 1.3, 1.28

Resistance Levels: 1.37, 1.38, 1.41

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Hawkish BoE! GBP/USD Drops Below 1.34

Risk Disclosure