Instrument: GBPUSD
Bullish Preference:
A buy position is envisaged if the price trades above 1.27413 with take profit at 1.27523.
Bearish Preference:
A Sell position is envisaged if the price trades below 1.27213 with take profit at 1.27111.
Fundamentals:
USD: CB Consumer Confidence 3:00pm
Comment:
GBP/USD rallied in Asian trade to a high of around 1.2745 ahead of the European open thanks in part to a softer US Dollar. The pair does appear to be struggling to reach last week’s highs around 1.2850 as rangebound trade has been a constant theme. As the UK continues to grapple with runaway inflation, reports have emerged that the Government will not follow through on recommendations of the pay review body regarding public sector wage increases. As discussed by the Chief Secretary to the Treasury John Glen, who told Sky News that Government needs to consider inflation amid fears that a public sector wage hike could add to the ongoing inflation conundrum. The bigger question moving forward is whether the UK is set for another round of public sector strikes should a deal fail to materialize.
Analysis: SCRUM Team