As we noted in our Fundamental Analysis today, “GBP/USD is trading near 1.1720 at the time of this article’s publication, having developed an upward correction on the weakness of the US dollar. In case of further growth, key resistance levels 1.1885, 1.2110 become targets. And yet, below these resistance levels, the GBP/USD remains in a long-term bear market zone, which favors short positions.
Many economists believe that the next action of the Bank of England will be to raise interest rates by 0.50% and then by 0.25%. The combination of a protracted economic recession in the UK with the “blurred” position of the central bank regarding the need for aggressive containment of inflation creates the preconditions for a weakening of the pound.
Next week (Wednesday), the Office for National Statistics will publish the latest inflation data (for details, see Key Economic Events of the Week 11/14/2022 – 11/20/2022). Its new growth is expected (up to 10.3% year on year).
Support levels: 1.1640, 1.1480, 1.1455, 1.1400, 1.1200, 1.1160, 1.1100, 1.1080, 1.0940
Resistance levels: 1.1885, 1.1900, 1.2000, 1.2110