The legend in the InstaSpot team!
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The trading day starts unfavorably for the British pound. The UK's lower Consumer Price Index (CPI) data contrasts with the US's higher inflation figures. This dynamic puts downward pressure on the GBP/USD pair. Central banks' monetary policies are pivotal in shaping market sentiment.
In the UK, the month-over-month inflation rate dropped significantly (-0.6%, against a forecast of -0.3% and a previous rate of 0.4%). The year-over-year data also underperformed. This trend may prompt the Bank of England (BoE) to consider relaxing its monetary policy sooner. Market projections now fully anticipate three 25 basis points rate cuts by the BoE this year.
Conversely, higher US inflation data alters Federal Reserve rate cut expectations. The likelihood of a rate reduction in 2024 has decreased, pushing the anticipated timing from June to July, and virtually excluding a cut in May.
A sharp reversal from 1.2691 characterizes the GBP/USD pair's behavior, following a Bearish Engulfing candlestick pattern in the H4 chart. The pair broke below a short-term trend line, setting a local low at 1.2543. The next bear target is 1.2519. Intraday resistances are at 1.2570 and 1.2600.
Indicator Analysis
Market Sentiment Analysis
Despite a generally bullish sentiment (57% bulls), recent shifts lean bearish (55% bears in the last three days).
Weekly Pivot Points
WR3 - 1.26951
WR2 - 1.26671
WR1 - 1.26519
Weekly Pivot - 1.26391
WS1 - 1.26239
WS2 - 1.26111
WS3 - 1.25831
For bullish traders, watching for support holds and sentiment shifts is key. Bearish traders should monitor for further breaks below support and negative GBP news. Both scenarios highlight the importance of staying attuned to monetary policy changes and market sentiment.
The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.
Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.
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*এখানে পোস্ট করা মার্কেট বিশ্লেষণ আপনার সচেতনতা বৃদ্ধির জন্য প্রদান করা হয়, ট্রেড করার নির্দেশনা প্রদানের জন্য প্রদান করা হয় না।
ইন্সটাফরেক্স বিশ্লেষণমূলক পর্যালোচনাগুলো আপনাকে মার্কেট প্রবণতা সম্পর্কে পুরোপুরি সচেতন করবে! ইন্সটাফরেক্সের একজন গ্রাহক হওয়ায়, দক্ষ ট্রেডিং এর জন্য আপনাকে অনেক সেবা বিনামূল্যে প্রদান করা হয়।
