Trading activities witnessed the impact of Britain's cooling inflation on the pound's performance against the dollar. This is the pound's biggest one-day fall since March, coinciding with a plunge in British government bond yields as inflation slows to 7.9% in June.
As the prospect of a sustained rise in the Bank of England base rate diminishes, traders are now considering profit-taking activities. Though with rates peaking between 5.75-6.0%, the pound still offers higher yield returns compared to the United States.
Meanwhile, the dollar received a boost from positive U.S. labor market data, fueling expectations of another 25 basis points interest rate hike by the Federal Reserve. However, uncertainty remains about the central bank's next move, as we closely monitor economic reports and consumer sentiment readings.
GBPUSD Technical Analysis:
Will the pound find support at the current confluence at $1.28400, or is a breakdown imminent, inciting a potential sell-off? Be prepared as inflation eases off, as it may trigger sharp price movements in the pound.
In this video, We analyze the 4-hour timeframe, exploring both bullish and bearish sentiments to uncover promising trading opportunities for the week ahead. Key levels, trendlines, and support/resistance points will be meticulously examined to reveal essential insights into the current market structure.
Don't miss the key level at $1.38400, sharing a critical confluence with the ascending trendline in the 4H timeframe. As we stand at a juncture where both sellers and buyers hold sway, the market's reaction to this zone will determine the direction of price action in the upcoming days.
Stay connected and engage in the comment section to remain updated on the latest developments. Thank you for watching, and get ready for more enlightening insights into GBPUSD in our upcoming content. Prepare for a thrilling journey ahead!
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