GBP/USD bullish move recovery on H4 timeframe must read caption.
GBP/USD will retrace from here now and will recover itself I have prepared this chart for and it displays the GBP/USD pair on a 4-hour timeframe. It shows a long-term downtrend from mid-2024 to early 2025. A support level, previously established in an earlier timeframe, is marked near the 1.2200-1.2400 price level. This area serves as a buy entry point, with a target for potential upward price movement indicated.
The pair has recently tested the support zone, suggesting a possible rebound. However, its performance is sensitive to external factors such as economic and political developments in the UK and the US.
UK Market-Affecting News:
1. Economic Data:
GDP Growth: The UK has recently reported slower economic growth, raising concerns about a potential recession.
Inflation: Persistent inflationary pressures are impacting consumer spending and business confidence.
BoE Monetary Policy: The Bank of England's decision to pause or raise interest rates in light of slowing growth and high inflation could influence GBP/USD.
2. Social Factors:
Cost-of-Living Crisis: Rising energy bills and food prices are putting pressure on household budgets, dampening economic activity.
Strikes and Protests: Various sectors are experiencing labor strikes, creating additional uncertainties for businesses and supply chains.
3. Political Uncertainty:
Discussions on post-Brexit trade agreements, especially related to Northern Ireland, continue to weigh on investor sentiment.
4. Global Factors:
Any signs of a US Federal Reserve pivot or sustained hawkishness will directly affect the dollar and, by extension, the GBP/USD exchange rate.
These factors should be considered but along with analysis I have shown in the above chart.
Key levels:
Buy GBP/USD from; 1.21400-1.21200
Target at; 1.23100
SL at; 1.20010
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