FX: GBP/USD - What Are The Scenarios For British Pound To US Dollar?

Inflation Outlook: Energy Prices Drive Hospitality, Food Inflation Eases

Relevance up to 07:00 2022-07-05 UTC+2 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Trend analysis (Fig. 1).

The pound-dollar pair may move upward from the level of 1.2093 (close of Friday's daily candle) to the target of 1.2152, the 50.0% retracement level (red dotted line). Upon reaching this level, the price may continue to move upward with the target of 1.2195, the 61.8% retracement level (red dotted line). From this level, a downward pullback is possible.

 

Exchange Rates 04.07.2022 analysis

 

Fig. 1 (daily chart).

Comprehensive analysis:

  • Indicator analysis – up;
  • Fibonacci levels – up;
  • Volumes – up;
  • Candlestick analysis – up;
  • Trend analysis – up;
  • Bollinger bands – up;
  • Weekly chart – up.

General conclusion:

Today the price may move upward from the level of 1.2093 (close of Friday's daily candle) to the target of 1.2152, the 50.0% retracement level (red dotted line). Upon reaching this level, the price may continue to move upward with the target of 1.2195, the 61.8% retracement level (red dotted line). From this level, a downward pullback is possible.

Alternative scenario: from the level of 1.2093 (close of Friday's daily candle), the price may move downward with the target of 1.2043, the 76.4 retracement level (yellow dotted line). Upon reaching this level, an upward movement is possible with the target of 1.2152, the 50.0% retracement level (red dotted line).

 

Read more: https://www.instaforex.eu/forex_analysis/315159

Inflation Outlook: Energy Prices Drive Hospitality, Food Inflation Eases

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