Improving market sentiment and a weaker dollar boosted the pound;Weekly highs ahead of next week’s key event risk announcement1.2200May act as a resistance to the rise of the pound;The UK government seeks to propose a new wages package to end the National Health Service (NHS)NHS) general strike
With the Fed and Bank of England rate decisions coming up on the economic calendar next week, weekly highs are expected to1.22016May become a resistance to the pound’s rise.So for the rest of this week and early next week, the pound/The dollar may remain at1.2000-1.2000interval arrangement.
The UK government’s report has confirmed that the National Health Service (NHS)NHS) staff propose a new wage package with a raise, which may include paying union-demanded one-time bonuses25billion pounds. The union said it would advise union members to accept the new package, while confirming that further strikes would be suspended. In addition, the long-awaited new Brexit agreement seems to be coming to a final conclusion, and the British Prime Minister is expected to vote on the Windsor framework next Wednesday.
European Central Bank announces interest rate hike yesterday50The basis point has had a knock-on effect in markets, with the odds of a rate hike by the Fed and Bank of England next week now rising.Fed to hike rates next week25pip probability from yesterday’s54%soared to the time of writing82%. Next week’s UK inflation data will be released the day before the Bank of England’s interest rate decision, and may provide the final guidance for the Bank of England’s interest rate path. Rising inflation may prompt the Bank of England to continue raising interest rates.
Looking ahead, the Bank of England tonightIpsosThe survey will provide further information on consumer sentiment and inflation expectations.The U.S. will be followed by the release of the University of Michigan’s consumer sentiment index, and these two events are likely to increase market volatility, but are unlikely to change the value of the pound./ The overall trend of the dollar.
What is the Consumer Sentiment Index? How to use it in trading?
GBP/USD Technical Analysis
The trend on the daily chart suggests that the exchange rate may go further up and may hit a new high.self exchange rate3moon8day from low1.1800Since the rebound at the mark, it has risen significantly and the daily line closed at the high point of the previous range1.2173above.The exchange rate retreated yesterday but then traded in100The daily moving average bounced off support, while the daily close recorded a bullish inside line, suggesting further gains are possible.The key to the next trend is whether the exchange rate can rise above the weekly high today1.2200Pass, if it breaks through, it may rise further and challenge1.2260resistance.
on the contrary, If the exchange rate is blocked and falls back, it may fall to100on the daily average1.2040where the support exchange rate remains in the weekly range1.2000-1.2200Inside.
GBP/USD daily chart –2023Year3moon17day
Wedge and triangle breakthroughs often detonate big market! How to trade wedge breakouts?
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