The British Pound was a big gainer on the knee-jerk response to weaker than expected US CPI. However the Fed was clear about its stance on the need for more data and market is speculating about a mere single rate cut for 2024 by the US should labor markets remain robust and inflation persistent. In contrast expectations for the UK will be for an August cut though we would not be surprised if action were taken on the 20th. Comparing apples to apples UK labor markets have also been disappointing and inflation easing much quicker than in the US.
Resistance
- 1.28605 – Yesterday’s High
- 1.28183 – Three Week Consolidation Resistance
- 1.27904 – Intraday Consolidation Floor
Support
- 1.27513 – Intraday Consolidation Resistance
- 1.27150 – Intraday Consolidation Lows
- 1.26880 – Three Week Consolidation Lows
After a past the three week range play resistance, GBPUSD ended Wednesday back under the 1.28183 price point. With a long wick sticking out of a consolidation and 4H stochastics coming off overbought levels we see GBPUSD as likely continuing its three week ranging action with bias still on an eventual bearish breakout. Consider sells at market given the hourly charts pictured below the immediate objective being the intraday consolidation resistances at 1.27513 then on to the daily level 1.26880 area.
