The British pound staged an impressive comeback in spite of poor fundamentals. Announcement of new fiscal measures last week triggered a slump on GBP market and UK bond market, forcing Bank of England to intervene on the latter. While economists' response to those actions was mixed with many pointing that it will provide only short-term relief, BoE actions managed to restore calm on the GBP market. GBPUSD is trading at more or less the same level as during the 'mini-budget' announcement. There is a high chance that GBPUSD will post a weekly gain.
Taking a look at the GBPUSD chart at the H1 interval, we can see that the pair made quite an impressive recovery this week. Pair broke above the 200-hour moving average and 50% retracement of the downward impulse, started on September 13, 2022, yesterday and tested 61.8% retracement in the 1.1200 area overnight. While the test was a failed one, the pair is gearing up for another attempt.
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Source: xStation5
