• June 18, 2024
  • Currencies

GBP: Analysts Forecast Lower CPI Figures

In the UK, inflation is anticipated to decline to 2% in May, down from 2.3% in April, reaching the Bank of England's target for the first time since April 2021. Despite this positive development, the government will not see a rate cut in Thursday's meeting due to the upcoming election on July 4th, as the BoE aims to avoid influencing the election campaign. Additionally, services inflation remained high at 6% in April, and the BoE requires it to decrease before considering a rate cut. Markets are currently expecting the initial rate cut to occur in August. Let’s see how things are looking from the technical analysis.

GBPAUD – H4 Timeframe


GBPAUD on the 4-hour timeframe has recently broken above the previous high, signifying the trend as a bullish trend – as confirmed by the moving averages. Asides this, we can see the demand zone lying just below the 200-period moving average as a further confirmation of the bullish sentiment.

Analyst’s Expectations: 

Direction: Bullish

Target: 1.93929

Invalidation: 1.90290

GBPCAD – H4 Timeframe


The 4-hour timeframe of GBPCAD shows a bullish array of moving averages, hinting at the likelihood of a bullish impulse once price reaches an area of demand. That area of demand is what I believe can be found aligning with the 200-period moving average. On that note, my bullish sentiment will be confirmed based on a clear rejection from the highlighted demand zone.

Analyst’s Expectations: 

Direction: Bullish

Target: 1.75147

Invalidation: 1.73373

GBPNZD – H4 Timeframe


GBPNZD on the 4-hour timeframe has just been rejected off the rally-base-drop supply zone highlighted on the attached chart in a move that could be considered the start of a bearish impulse. In confluence with the supply zone is the 200-period moving average, as well as the bearish array of the moving averages. These are my confirmations for a bearish sentiment.

Analyst’s Expectations: 

Direction: Bearish

Target: 2.05870

Invalidation: 2.08167


Trading foreign currencies on margin involves significant risks and may not be suitable for everyone, as high leverage can increase both potential gains and losses. Before entering the foreign exchange market, it is essential to evaluate your investment goals, personal experience, and risk tolerance.

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Author: Adetola-Freeman Ogunkunle