The GBPUSD fell to its lowest level since March 2020 during today’s session, amid rising UK macroeconomic outlook, rising inflation and rising energy prices. Also aggressive comments from several Fed members support the US dollar. Today the Fed Meister said it was too early to conclude that inflation is peaking while wage pressures are showing no signs of easing. So, in his opinion, the US central bank needs to raise rates “somewhat above 4%” early next year and then keep them there. On the other hand, after the new Prime Minister Liz Truss took office, the political uncertainty in the UK eased somewhat. Tomorrow the new government is expected to unveil an energy rescue plan with 200,000 million pounds of measures aimed at freezing energy bills in the United Kingdom. From a technical perspective, the GBPUSD bounced off key support at 1.1425, where the pandemic is lower. As long as the pair holds up, a sharp correction towards the local resistance at 1.1775 is possible.
GBPUSD, Interval W1. Source: xStation5
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