This week’s parade of U.Ok. consumer-related stories received me Cable’s downtrend.
Will GBP/USD make new month-to-month lows this week?
Right here’s the chart that I’m :
In case you missed it, “riskier” bets like GBP recouped a few of their losses final Friday after days of danger aversion and selloffs.
GBP/USD went up all the best way to 1.2300 the place it discovered resistance.
And why not? As you possibly can see, The 1.2300 deal with is close to the 100 SMA, the 50% Fibonacci retracement of the final downswing, and a pattern line resistance that’s been holding for the reason that second half of April.
Development warriors have an opportunity to leap within the downtrend this week because the U.Ok. prints its CPI and retail gross sales stories.
Inflation is anticipated to hit contemporary report highs at 9.1% in April whereas retail gross sales exercise may present additional slowdown as shoppers spend much less amidst greater costs.
If this week’s stories encourage talks of the Financial institution of England (BOE) ending its tightening cycle ahead of what different central banks have deliberate, then GBP/USD may make new month-to-month lows within the subsequent few days.
But when final Friday’s risk-taking extends to this week, or if this week’s knowledge releases encourage the BOE to maintain calm and keep on with its tightening schedule, then Cable may retest and even break its pattern line resistance on the 1-hour timeframe.
What do you assume? Which approach will GBP/USD go?
This content material is strictly for informational functions solely and doesn’t represent as funding recommendation. Buying and selling any monetary market entails danger. Please learn our Danger Disclosure to be sure to perceive the dangers concerned.