Instrument: GBPUSD
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 1.31969 take profit at 1.32137.
Bearish Preference:
Sell position is envisaged if price trades below 1.31537 take profit at 1.31421.
Fundamentals:
1pm GBP MPC Official Bank Rate Votes
GBP Monetary Policy Summary
GBP Official Bank Rate
Comment:
Yesterday, the Fed raised the interest rate from 0.25% to 0.5% and changed its economic projections. The Fed’s GDP growth forecast for 2022 was changed from 4% to 2.8%, while the expectation for the federal funds rate at the end of this year was changed from 0.9% to 1.9%. In addition, the Fed noted that it would start to reduce the size of its balance sheet at a coming meeting. The were no major surprises in Fed’s projections and commentary, and the U.S. dollar lost some ground after the release of the Fed’s statement. Today, foreign exchange market traders will focus on the BoE Interest Rate Decision. Analysts expect that the rate will be raised from 0.5% to 0.75%. As usual, the Bank’s commentary may have a significant impact on GBP/USD dynamics.
Analysis: SCRUM Team