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May 07 - 09:55 PM

GBP/USD - Should Be An Interesting Week For Sterling

By Andrew M Spencer  —  May 07 - 07:40 PM
  • -0.05%, with the U.S. dollar a touch firmer to start the week - UK holiday

  • Bank of England widely expected to hike rates 25pts to 4.5% on May 11

  • Strong March CPI at 10.1% expected to prompt another hike - BoE outlook key

  • Pomp and splendour of King Charles' coronation went off without a hitch

  • Charts; momentum studies, 5, 10 & 21-day moving averages rise

  • 21-day Bollinger bands expand - technical setup suggests higher

  • Targets a test of 1.2666 May 2022 top, then 1.2751 61.8% 2021-2022 fall

  • NY 1.2559-1.2652 range is the initial support and resistance

    For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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