GBPUSD SHORT
Updated
Fundamental analysis:
Overall I have a bullish bias for the DXY (USD), given the current recession, it being the federal reserve and the feds current hawkish. Inaddition this week news on the US interest rate will be released, forecasted to increase by 0.75 making the total interest rate at a massive 2.5%. Increasing the interest rate is often used a strategy to reduce inflation.
Technical analysis:
GBPUSD is currently in a downtrend and has been all year on a higher timeframe. The green lines on the chart represent BEARISH DIvergence, in that the price has made higher highs but the rsi has made lower highs, suggesting that bullish momentum is declining.
Others:
EURUSD is showing the same pattern and declining at a higher rate, waiting for pull back to enter
Note
Adding to the Fundamental analysis picture for GBP:GBP current interest rate ( 9.4% ) is higher than USD ( 9.1%).
GBP Interest rate is lower ( 1.2%) then the USD ( 1.75% ).
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.