Chapter 45 GBPUSD in uptrend
16//11/2023
Summary
The CPI inflation rate in both countries leads the market
Fundamental analysis
Fundamentally on this pair, we witnessed this week the data release in the United States the CPI inflation rate Lower than the previous month and lower than market expectation from 3.7% to 3.1%As we know the Federal Reserve target for inflation in the United States is 2% so this figure we've seen recently can lead to Stop increasing interest rate in the USand this will lead for weaker USD as a currency On the other hand in the United Kingdom the CPI inflation rate Almost remain the same result as a market expectation at 4.6% This figure will keep the pound strong.
United States CPI YoY
Prev: 3.7%
Fcst: 3.3%
Act: 3.1%
United Kingdom CPI YoY
Prev: 6.7%
Fcst: 4.8%
Act: 4.6%
Technical analysis
In this 4-hour diagram chart, the market price is 1.23983 we expect the price to move down to the previous demand zone at 1.23000 Fibonacci level at 38.2 to create a new Higher low and from there we expect the price to turn back up to the old supply zone at 1.25000 (Daily chart resistance) to create uptrend with Higher highs and higher lows Following the daily chart uptrend with 20 moving average pointing up.
Trading Recommendation
Trading Direction: Long
Entry Price: 1.23089
Target Price: 1.25016
Stop Loss: 1.22137
