GBPUSD Analysis: The Fed Still Has Expectations of Cuts This Year

Fundamental Analysis of GBPUSD

GBPUSD Key Takeaways

• British economic resilience: The UK unemployment rate in April was 4.5%, the previous value was 4.6%. The number of unemployment benefit applicants in the UK in April changed by 5,200, the previous value was 18,700. Pill, chief economist of the Bank of England, said that interest rates may need to remain high.
• Fed inflation is better than expected: The latest US CPI data in April was better than expected, supporting the expectation of two interest rate cuts by the Federal Reserve this year, and the US dollar index weakened and fell. However, the market is still worried that the data does not take into account the impact of tariffs. Pay attention to today’s US sales retail monthly rate data in April.
• Technical Analysis of GBPUSDGBPUSD Daily Chart Insights
• Stochastic oscillator: The indicator sends a bullish signal above the overbought area, and there is a probability of a rebound in the short-term exchange rate. Focus on whether there is a sign of turning downward when the indicator approaches the 50 median line.
• Slowing up trend: After the exchange rate fell below the rectangular support area, the pound formed a head and shoulders top structure, and the appreciation trend of the pound is likely to slow down. However, since the exchange rate returned to the resistance yesterday, focus on whether the rebound trend can break through the previous resistance price of 1.340. If it cannot break through, the exchange rate will continue to fall, otherwise the bullish trend is clear and strong and will continue to rise.

GBPUSD 2-hour Chart Analysis

• Stochastic oscillator: The fast line indicator rises rapidly, and the extreme overbought trend suggests that it is not suitable to short in the short term. However, during the Asian session on Wednesday, the indicator showed signs of slowing down and adjustment. Investors should pay attention to the trend of the exchange rate after encountering resistance.
• Key resistance level: After the sharp drop on Monday, the pound rebounded sharply yesterday to reverse the downward trend and is about to approach the starting point of the downward trend. There is a probability of adjustment in the short term. If the exchange rate breaks through the downward trend line, the probability of the pound continuing the upward trend will increase.

GBPUSD Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.3245,
• Bullish Scenario: Bullish sentiment prevails above 1.3245, first target 1.3340 , second target 1.3370;
• Bearish Outlook: In a bearish scenario below 1.3245, first target 1.3210, second target 1.3170.

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