- The price analysis of GBP / USD was bull, but the function retired a bit.
- The United States and China are finally ready to meet and begin negotiations on trade.
- Participants in the market expect the Fed to keep interest unchanged.
GBP / USD The price analysis was bullal, but the function retired a bit from its multi-day tip due to the power dollar. Greenback received support from the report that China and the United States would hold talks on Saturday to determine the fate of tariffs. Meanwhile, market participants are prepared for a meeting of the Federal Committee in Open Now (FOMC).
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After weeks of waiting, the United States and China are finally placed to meet and start trading negotiations. The trade war between the two countries had a significant impact on the global economy. The reaters survey recently showed economists to expect a global recession. At the same time, Trump Tariffs reduced the demand for American property in recent weeks.
Fortunately, trading tensions have softened. Still, Trump announced new tariffs in the film industry, keeping a cloud of insecurity over the economy.
Meanwhile, market participants expect the Fed to keep interest rates unchanged later in the day. Recent American economic data showed the elastic economy. Therefore, there is no need to feed to decrease at the rate of installments. However, experts believe that the economy will deteriorate in the coming months. As a result, market participants are expecting to reduce the rate in July.
On the other hand, the bank of England is likely to reduce the interest rates of 25-Bps on Thursday. Moreover, policy makers may not be more goodbye due to Dimmer’s looks for the global economy.
GBP / USD Key events Today
- Federal Function Rate
- Fomc statement
- FOMC Press Conference
GBP / USD Technical price Analysis: Books to challenge resistance to the range
On the technical side, GBP / USD price trades above 30-SMA with RSI over 50, supporting bacara bias. However, in a larger extent, the price trades in the range between support between 1,3225 and resilience levels at 1,3401.
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The price initially traded in a bical trend before pausing and started consolidation. Meanwhile, RSI has made a number of lower high people, which indicates a bearing divergence. However, the bulls are in the ranging leadership, which means it will soon be able to resist the range.
The above break would confirm the continuation of the previous trend. On the other hand, if the bears return, they can break under the support of 1,3225, signaling the trend reversal.
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