GBPUSD Trade Idea
The GBP/USD exchange rate has faced challenges, with recent concerns about a UK recession and hawkish Fed rhetoric impacting the pound’s performance. This has led to a decline in the exchange rate due to UK retail weakness and the anticipation of monetary statements from influential entities such as the Federal Reserve.
Despite attempts by the British Pound to rally, an emerging bearish tone suggests a potential long-term bearish trend for the US dollar index. The British Pound’s recent performance has seen initial declines followed by stabilization above a key trend line. This stability is noteworthy, indicating resilience in the face of market challenges.
Due to the weakness of the US dollar, the currencies that are hounding against the US dollar, for example, the British pound, and the euro, have been able to experience good growth in the last weeks, but the British pound and its economic problems, these rallies will be short-term, and what will remain is the strength America’s economy is even with the Federal Reserve stopping interest rate hikes.
The British Pound is at attractive levels for sale. We are waiting for signs of return to be evident and we enter into the sale of the British pound.
The resistance level is 1.27140 and 1.2820 area and the first target could be 1.220 area