GBPUSD In a very risky scenario
Updated
The entire market is currently focused on the upcoming FOMC meeting and the potential rate cut that may be announced. Market participants are analyzing each piece of US economic data as it is released, trying to anticipate the Federal Reserve’s decision. However, predicting a FED rate cut in advance based solely on monthly data is challenging.
If the FED decides to cut rates, it will likely be based on projected CPI trends rather than just monthly data. Achieving the FED’s target for CPI and other indicators requires time, making their decision somewhat subjective.
A common issue observed this time is the high level of market speculation and manipulation by major players. Charts often show camouflaged movements during critical moments without any apparent reason.
Technical Analysis:
Price is moving inside a large range trading pattern.
If the price will manage to hold below the resistance zone located between 1.3230 - 1.3265 the odds are that GBPUSD can move lower tomorrow after the FOMC data.
It's very risky to anticipate this bearish scenario given that the entire market expects the USD to weaken.
However, as long as we are not market makers, anything is possible.
You may find more details in the chart!
Thank you and Good Luck!
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Trade closed: target reached
GBPUSD - target reached
Comment
After mixed data from the UK, the GBP is showing slight strength. The UK annual CPI climbed 2.2% in August, matching market expectations. Meanwhile, core CPI, excluding volatile food and energy items, increased to 3.6% YoY in August, up from 3.3% in July and higher than the expected 3.5%.
The market is also anticipating that the BOE may not cut rates on Thursday, September 19.
Investors are shifting their focus to the Eurozone CPI inflation data, which will be released two hours after the opening of the London market.
So far, the GBP is showing slight strength, and after the news, GBP/USD increased by nearly 25 pips. It is possible that GBP/USD may rise further during the day in anticipation of the FOMC interest rate decision and the possibility of a rate cut by nearly 50 bps.
Comment
Comment
👉We may see GBPUSD to reach 1.3200 again before it moves down more...never knows what FOMC may bring for us.Trade closed: target reached
GBPUSD the bullish target I explained above 1.3200 was reached again :)
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