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GBP/USD: Inflation Data Triggers Volatility Amidst BoE and Fed..GBP/USD: Inflation Data Triggers Volatility Amidst BoE and Fed Meetings As anticipated in our previous analysis, GBP/USD experienced a shift in momentum following Tuesday's CPI report, climbing to around 1.2600 before reversing course and dipping below 1.2515. The upcoming US inflation data for November is poised to be the catalyst for the next significant market move, setting the stage for key policy meetings by the Federal Reserve (Fed) and the Bank of England (BoE). UK Annual Wage Inflation Decline: The UK witnessed a notable decline in annual wage inflation, measured by the change in Average Earnings Including Bonus, which dropped sharply to 7.2% in the three months to October from the previous 8%. Average Earnings Excluding Bonus followed suit, registering a decrease from 7.8% to 7.3% in the same period. Potential Impact on BoE Policy: While the BoE is expected to maintain its current policy stance this week, the soft wage inflation readings could be viewed favorably by policymakers. The concerns over robust pay growth hindering efforts to bring inflation back down to the 2% target may find some relief in these figures. The central bank's response to evolving economic indicators will be closely monitored in the coming weeks. Technical Analysis and Bearish Setup: Our analysis maintains an unchanged bearish setup for GBP/USD, with anticipated targets at 1.2500 and 1.2480 in extension. The softening wage inflation data and potential implications for BoE policy contribute to the prevailing bearish sentiment. Conclusion: As GBP/USD navigates through volatile market conditions, the upcoming US inflation data will likely play a pivotal role in shaping the currency pair's trajectory. With the BoE policy meeting on the horizon, the impact of wage inflation on central bank decisions adds an extra layer of complexity to the market dynamics. Traders and investors should remain vigilant as they assess the evolving economic landscape and adjust their strategies accordingly. Our preference Short positions below 1.2585 with targets at 1.2500 & 1.2480 in extension.
Short
by FOREXN1
1
GBP/USD Dynamics: Navigating Economic Indicators and Central ...GBP/USD Dynamics: Navigating Economic Indicators and Central Bank Uncertainties The GBP/USD pair has found modest support for the second consecutive day, buoyed by a softer USD and a positive risk sentiment in the markets. Despite the initial boost, the pair remains below the overnight swing high, with spot prices holding steady in the 1.2580-1.2585 region at the time of writing. This article delves into the factors influencing the current GBP/USD scenario, shedding light on the UK jobs data, the US Dollar's trajectory, and the looming impact of central bank decisions. GBP/USD Price Movement: As of the latest update, the GBP/USD pair is trading at 1.2571, situated within a defined range area. The potential for a shift in the lower direction towards the 1.2500 level hinges on the outcome of the crucial US Consumer Price Index (CPI) report scheduled for release today. Traders are keenly observing this event, as a favorable report for the US could revert the price towards the lower end of the range. UK Jobs Data and BoE Influence: The UK's Office for National Statistics (ONS) reported a rise in unemployment-related benefits by 16K in November, slightly below the anticipated 20.3K. Notably, the previous month's reading was revised downward from 17.8K to 8.9K. However, the positive sentiment was dampened by a deceleration in Average Earnings during the three months to October, fueling speculation that the Bank of England's rate-hiking cycle might face headwinds in 2024. USD Movement and Market Sentiment: Conversely, the US Dollar experiences downward pressure, attributed to a decline in US Treasury bond yields and growing expectations that the Federal Reserve (Fed) will refrain from interest rate hikes. The Greenback's status as a safe-haven currency is further challenged by a positive tone in equity markets, prompting some repositioning trades ahead of the imminent release of the US consumer inflation figures. Central Bank Events on the Horizon: The GBP/USD pair's trajectory is poised for potential shifts as the market anticipates key central bank events. The Federal Reserve's policy decision, set to be announced after a two-day meeting on Wednesday, and the Bank of England's meeting on Thursday will likely exert considerable influence on the GBP's performance. As traders await these crucial events, caution is advised, given the potential impact on the recent bounce from the psychological 1.2500 mark and the monthly low reached last Friday. In the unfolding narrative of the GBP/USD pair, a complex interplay of economic indicators, central bank decisions, and market sentiment takes center stage. As traders navigate this dynamic landscape, the upcoming US CPI report and central bank meetings will undoubtedly steer the course of the currency pair. Caution remains paramount in positioning for potential market shifts, emphasizing the need for flexibility and responsiveness in the face of unfolding events. Our preference Short positions below 1.2620 with targets at 1.2500 & 1.2480 in extension.
Short
by FOREXN1
5
🔥 GBPUSD : First Long , Then SHORT (READ THE CAPTION)With a new review of the GBP/USD chart, we see that the price has finally started to correct after growing up to 1.27350 and has now entered a demand zone, which can be a stimulus for further price growth! Currently, the most important condition for further growth of this currency pair is maintaining the support of the range of 1.24470 to 1.25500! Be careful that after this short growth, the price may fall again and this price series will fill the liquidity voids and FVGs that have been created, which are marked on the chart! Please share your opinion about the possible trend of this chart with me and support us with your likes and comments. Best Regards , Arman Shaban
Short
by ArmanShabanTrading
1
Short Term Bearish Before Going Bullish...?On this 4 hour, this market has maintained its bullishness, printing higher highs and higher lows from over a week now. Prices are currently in a Bullish PB that is forming a high at the moment. Because the market never moves in a straight line, the market is expected to experience some bearish retracement back into our PB, from where it would be expected to experience some reversal before the continuation of the up move. We have refined our PB to a rather smaller zone. It is expected that prices will come right into our zone, and begin to reverse from there. When that happens, prices will be expected to resume the bullish push and go all the way to the 4 hour liquidity target above.
Long
by PanzyPips