GBPUSD quotes headed up

06 July 2023 142
GBPUSD quotes headed up

The dollar rose slightly after the release of the U.S. Federal Reserve’s (Fed) latest meeting minutes, which confirmed expectations of maintaining high interest rates.

The central bank’s decision to keep rates unchanged three weeks ago was the right one, said Federal Reserve Bank of New York President John Williams on Wednesday. At the same time, he hinted at the need for future rate hikes.

According to the CME FedWatch tool, the markets currently estimate an 89% probability of a 25-basis-point interest rate increase later this month.

As IG market strategist Yeap Jun Rong believes, the Fed is actively monitoring service sector prices to assess sustainability. Upcoming data from the U.S. ISM Services Business Activity Index will have an impact on this factor's assessment.

U.K. Construction Purchasing Managers Index (PMI) is published today at 8:30 am GMT. The macroeconomic indicator shows the current state and future prospects of business activity in the country. It is one of the earliest indices for assessing the economic situation. The index is projected to decline to 51. This level keeps the business climate relatively stable.

Market participants are mostly waiting for the U.S. labor data, which will be released tomorrow at 12:30 am GMT. According to forecasts, the number of new jobs in the non-farm sector should fall to 225,000. In this background, the U.S. dollar (USD) might lose some ground while waiting for the statistics.

The GBPUSD currency pair broke out of the corrective downtrend on the H4 timeframe.

In terms of wave analysis, the price is in the formation of the third ascending wave on the H1 timeframe. Breaking through the first wave at the level of 1.2725 has already taken place. The upward movement may intensify in the near term. The next resistance is at the level of 1.2760.



The short-term outlook for GBPUSD suggests buying.

The target is at the level of 1.2840.

Part of the profit should be taken near 1.2760.

The Stop-loss is set at 1.2635.

Bullish trend has a short-term character, so the trade volume should not be more than 2% of your balance.

This content is for informational purposes only and is not intended to be investing advice.

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