The market was calm on Tuesday morning, as traders were awaiting the British Annual Budget report and the US inflation data. The first event did not cause any reaction, while the latter shook up the market significantly with a 100-pip surge within a couple hours. The bullish sentiment was likewise strengthened by Trump's unexpected decision to fire the US Secretary of State.
As a result, the pair breached a six-week down-trend, the weekly R1, the monthly PP and the 38.20% Fibo retracement. The following hours were once again spent without major advances, thus suggesting that some correction south could be possible today. The southern limit for today could be the the aforementioned pivot points at 1.3930.
Subsequently, the rate is expected to surge up to the senior channel circa 1.40.
Interested in GBPUSD technicals? Check out the key levels
- R3 1.4134
- R2 1.4065
- R1 1.4013
- PP 1.3944
- S1 1.3893
- S2 1.3823
- S3 1.3772
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