GBP/USD portrays indecision around mid-1.2200s ahead of UK/US PMI data
GBP/USD treads water around 1.2265 during the early Asian session on Thursday, after failing to extend the recovery from a weekly low beyond 1.2315. The cable pair’s latest inaction could be the mixed plays, as well as cautious sentiment ahead of the preliminary PMIs for June month from the UK and the US.
|Today last price||1.2258|
|Today Daily Change||-0.0015|
|Today Daily Change %||-0.12|
|Today daily open||1.2273|
|Previous Daily High||1.2324|
|Previous Daily Low||1.2242|
|Previous Weekly High||1.2407|
|Previous Weekly Low||1.1934|
|Previous Monthly High||1.2667|
|Previous Monthly Low||1.2155|
|Daily Fibonacci 38.2%||1.2293|
|Daily Fibonacci 61.8%||1.2273|
|Daily Pivot Point S1||1.2235|
|Daily Pivot Point S2||1.2197|
|Daily Pivot Point S3||1.2152|
|Daily Pivot Point R1||1.2317|
|Daily Pivot Point R2||1.2362|
|Daily Pivot Point R3||1.24|
UK inflation indicates that the Bank of England is moving too slow
GBPUSD is now trading at 1.22 - near the psychological low of 1.2000, where it received critical support in 2017 and 2020. But that support may not survive the third test of strength due to an increasingly threatening gap between inflation and interest rates, which would devalue debt. But this is a risky policy that could undermine confidence in the financial system, which will require decisive and brutal measures for the economy to restore.
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