Considering the scenario that the CPI data is released higher and/or the FOMC presents a hawkish tone, this would mean that the US interest rates could stay high for longer.
This would bring significant strength to the DXY which could see massive downside for the GBPUSD.
However, the GBPUSD has developed a strong support along the 1.27 price level, formed by several swing points and the 23.60% Fibonacci retracement level.
In DXY strength, look for the GBPUSD to break the bullish trend line and the support level before anticipating further downside toward the 61.8% Fibonacci retracement level and support area of 1.25
This would bring significant strength to the DXY which could see massive downside for the GBPUSD.
However, the GBPUSD has developed a strong support along the 1.27 price level, formed by several swing points and the 23.60% Fibonacci retracement level.
In DXY strength, look for the GBPUSD to break the bullish trend line and the support level before anticipating further downside toward the 61.8% Fibonacci retracement level and support area of 1.25
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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.