GBPUSD poised for further gains
Fundamental Perspective:
Following remarks by BoE chief economist Huw Pill highlighting ongoing challenges with service sector inflation and strong wage growth, markets trimmed expectations for BoE rate cuts, supporting the pound's rally.
Meanwhile, as the UK election concluded, the political stability and policies aimed at enhancing Britain's investment appeal could further bolster the pound.
Technical Perspective:
GBPUSD formed an ascending channel with a bullish breakout of the descending trend line, indicating further upside potential. If GBPUSD sustains its bullish momentum above the 1.2800 support and breakout zone, a further rise toward the 1.2940 resistance might occur. Conversely, a break below 1.2800 could prompt a deeper retracement, with 1.2650 as the next potential support.
Following remarks by BoE chief economist Huw Pill highlighting ongoing challenges with service sector inflation and strong wage growth, markets trimmed expectations for BoE rate cuts, supporting the pound's rally.
Meanwhile, as the UK election concluded, the political stability and policies aimed at enhancing Britain's investment appeal could further bolster the pound.
Technical Perspective:
GBPUSD formed an ascending channel with a bullish breakout of the descending trend line, indicating further upside potential. If GBPUSD sustains its bullish momentum above the 1.2800 support and breakout zone, a further rise toward the 1.2940 resistance might occur. Conversely, a break below 1.2800 could prompt a deeper retracement, with 1.2650 as the next potential support.
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