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Intraday Analysis – GBP bounced back

Intraday Analysis – GBP bounced back

GBPUSD recovers some losses


Cable surged after the BoE stated that it will not cut interest rate any time in the near future. The price is trying to hold on to the gains from its recent bullish break. The key hurdle to overcome before a medium-term recovery can be seen is 1.2290, just below the October high of 1.2330. If that fails, further weakness will put 1.2160 under pressure. 1.2100, which is crucial to maintaining the current momentum, or its breach, would expose 1.2050 and Sterling would be at risk of a continued bearish trend.

USDCHF retains gains


As risk appetite increases in response to a more dovish Fed outlook, the US dollar is struggling. The greenback is now on a recovery path after a break above the 0.9085 bounce, which was previously faded. 0.9010 at the base of the latest bullish impetus is the first level to expect follow-through interests and 0.8950 further down would be the bulls’ second line of defence. A close back above 0.9110 may attract momentum buying and open the door to the October’s peak of 0.9240.

UK 100 bounces higher


The FTSE 100 saw some relief when the BoE maintained its interest rate. The jump above 7420 led to…

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