Instrument: GBPUSD
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 1.26344 with take profit at 1.26917
Bearish Preference:
Sell position is envisaged if price trades below 1.25233 with take profit at 1.24745
Fundamentals:
1:30pm USD Prelim GDP q/q
Comment:
The minutes from the early May Fed meeting, released Wednesday, indicated that the central bank policymakers will be sticking to a plan to raise rates by a half-percentage point at its next two meetings starting next month, largely as expected. However, they also largely ruled out even more aggressive tightening while also creating the possibility of a pause in rate hikes, after the June and July increases, something that Atlanta Federal Reserve President Raphael Bostic suggested earlier in the week. The scaling back of Fed tightening bets has followed slowing economic growth, with new home sales falling almost 17% last month and retailers reporting disappointing results as consumers scale back discretionary spending as the prices of essentials like food and petrol soar.
Analysis: SCRUM Team
