US Dollar Hit to 2-month low, while GBP rose to a 15-month high
On Tuesday, the US dollar experienced a decline, reaching its lowest point in two months. This depreciation occurred following indications from Federal Reserve officials suggesting that the central bank was approaching the conclusion of its tightening cycle. Conversely, the British pound surged to a 15-month high after exceeding expectations with strong growth in wages.
Important Fundamental Release
On Monday, multiple Federal Reserve officials expressed the view that in order to combat inflation, the central bank would likely need to implement further interest rate hikes. However, they also acknowledged that the end of the current cycle of monetary policy tightening was drawing near.
These comments resulted in a decrease in the value of the US dollar, with its index against a basket of currencies (DXY) reaching a two-month low of 101.66. As a consequence, traders adjusted their expectations regarding the extent to which US interest rates might need to rise in the future.
News Source: reuters.com
Weekly Pirce Action Incidate GBP will be continued Bullish
About our Weekly Forecast – We said the market will be short-term bearish and after GBPUSD will be bullish again.
Here is the analysis on YouTube
In this video, we share that After a brief pullback, the pair GBPUSD will be continued upward movement from a demand zone and, the pair is now aiming for the next supply zone. If we switch to the one-hour chart, we can observe that the price has broken its recent high point. However, it is now showing a reaction to this higher high. So, we can expect a short-term bearish movement before resuming its bullish movement. On the chart, there is a noticeable demand zone that has effectively taken off liquidity from previous lows and broken the high.
before this demand area, there is also a liquidity zone. It is possible that the market may test this zone in order to collect additional liquidity before resuming its bullish movement. It’s also important to note that at the bottom of the bullish movement, there is another demand zone price that may retest that area also. As a result, we should be prepared for both scenarios.
Hope this analysis helps you to make some profit this week.