Instrument: GBPUSD
Bullish Preference:
A buy position is envisaged if the price trades above 1.25588 with take profit at 1.25708
Bearish Preference:
A sell position is envisaged if the price trades below 1.25394with take profit at 1.25272
Fundamentals:
USD: 3:00pm Factory Orders m/m
Comment:
The Pound Sterling (GBP) faces immense selling pressure and will likely retest a 10-week low due to the active risk-aversion theme. The GBP/USD pair is reeling from the Bank of England’s (BoE) aggressive policy of raising interest rates, which is threatening the economic outlook. Investors believe that the global economy will shift into a recession if central banks continue to tighten monetary policy.
The UK economy is expected to remain vulnerable as the BoE could be the laggard in pausing the policy tightening spell. Britain’s Consumer Price Index (CPI) is the highest among G7 economies, which warrants more rate hikes ahead. However, UK Finance Minister Jeremy Hunt assured the public that the administration is on track to bring down inflation to almost 5% by year-end.
1.25272.
Analysis: SCRUM Team