The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
GBP/USD Is Ready for Reverse Up
Information is not investment advice
GBP/USD is moving inside the ascending channel. Since it’s in the lower part of this channel, the pair should reverse up and continue moving in zig-zag.
However, fundamental factors ruined that plans. The UK has published poor retail sales for August. Analysts forecasted the 0.5% growth, while the actual numbers showed a drop of 0.9%. Thus, the pair is moving back and forth near 1.3785 as technical and fundamental factors are opposite in the short term.
On Wednesday, the report revealed that the UK inflation reached a 9 year high in August, so the Bank of England can start taking actions earlier than the markets expect. The bank may start discussing the tightening: hint at hiking rates or cutting bond buys. If it happens, the GBP will surge.
The long lower tails signal us that bears were trying to push the price lower, but by the end of the sessions more bulls appeared, and they pushed the price higher. In other words, lower prices were rejected, so the price moved up. That’s why the price is likely to go up in the next session as well.
Thus, we might assume if the pair manages to close above the 23.6% Fibonacci retracement level of 1.3810, it may jump to the next round number of 1.3825 near the 38.2% Fibo level. Support levels are the recent lows of 1.3780 and 1.3750.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine…
Inflation in New Zealand is the highest since 1990, edging to 7.3% in Q2 2022. The currency is under heavy pressure as the Reserve Bank of New Zealand is trying to reverse the inflationary spiral. The week ahead will give us a valuable clue about the country’s monetary policy, and we are here to talk about that.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD.
The US dollar index has all chances of reaching the 2000s high of 120.00.