British pound is the best performing G10 currency today as latest hot CPI data showed both headline and core inflation in the UK unexpectedly accelerated in February, while analysts expected easing of price pressures. Markets now fully price in a 25 bps rate hike by the BOE this week. Before today's data release, traders were betting fairly either on a halt in rate hikes or a 25 bps increase. Pair will have a chance to move in the evening during the highly anticipated FED decision and Powell press conference. The US central bank is expected to raise the fed funds rate by 25bps, however some believe that a pause of the tightening cycle is needed in order to shore up financial stability after recent banking turmoil.
From a technical point of view, GBPUSD pair climbed above major mid-term resistance at 1.2290, which is marked with previous price reactions. If current sentiment prevails, upward move may accelerate towards 1.2450, where highs from January 2023 are located. On the other hand, in case of more hawkish FED, another downward impulse towards local support at 1.2215 may be launched. This level also coincides with the lower limit of local ascending channel.
Start investing today or test a free demoOpen account Try demo Download mobile app Download mobile app
GBPUSD, H4 interval. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.