GBP/USD Dynamics: Exploring the Impact of BoE's CPI Resistance

GBP/USD Dynamics: Exploring the Impact of BoE's CPI Resistance

The Pound Sterling (GBP) swiftly rebounds, fueled by persistent UK Consumer Price Index (CPI) data for December, postponing expectations of early Bank of England (BoE) rate cuts. Anticipated upside for the GBP/USD pair intensifies as investors speculate on potential early interest rate reductions by the Federal Reserve (Fed).

From a technical standpoint, our steadfast analysis suggests a GBP uptrend with an initial target set at 1.27500.

BoE policymakers remain vigilant amid a vulnerable UK economic outlook and stubborn price pressures. Future movements of the Pound Sterling hinge on the upcoming Retail Sales data for December, poised to be unveiled on Friday. Favorable consumer spending figures would further dispel notions of an imminent BoE rate cut.

Our preference

Long positions above 1.25350 with targets at 1.2750 & 1.2850 in extension


Our Previous Idea / entry :