GBPUSD Analysis - The UK inflation report this morning surpassed expectations across almost all metrics (see the economic calendar below), with the headline reaching the highest level in a decade. According to the Office for National Statistics (ONS), the main contributors to the final inflation statistics were the prices of electricity, gas, and food, despite the Energy Price Guarantee. With the rising costs of energy and food impacting essential goods, low- and middle-income households will be negatively affected as a large portion of their spending goes toward essentials.
Minimize Loss Maximize Profit, Use the Following Account! Want to Earn Tens of Millions Consistently? Do This!



GBPUSD Analysis Today

gambar1.png 

Source: DailyFX Economic Calendar Shortly after the CPI report, UK Chancellor Hunt issued a statement highlighting the need to make tough decisions to dampen inflationary pressures and help the Bank of England (BoE) in their task. Markets will know to look forward to Thursday’s Autumn Statement with great anticipation given the deterioration in the UK labour market as a result of the disease and immigration. With the winter months and fears of recession looming, the UK government and the BoE have a tough task ahead. Looking at the current money market pricing for the December meeting below, 59bps is shown which leaves room for a 50bps or 75bps rate hike as an option. I tend to favour a 50bps hike in the current environment, but there are still more data points ahead of the December 15 meeting. BOE RATE PROBABILITY

image2.png Source: Refinitiv

GBPUSD Technical Analysis


GBP/USD DAILY CHART

gambar3.png 
Chart prepared by Warren Venketas , IG Daily price action analysis GBPUSD saw rejection at the psychological 1.2000 level yesterday following US PPI and concerns about Russia potentially bombing Poland (a NATO member). Since then, it has shown as a long upper wick suggesting further lower. The reaction to the UK CPI release was surprisingly negative for the pound but despite the weaker greenback it should reflect more accurately as European markets come online. Key resistance levels:
  • 1,2000
Main support levels:
  • 1.1738
  • 1,1500

Mixed IG Client Sentiment

IG Client Sentiment (IGCS) shows retail traders are currently SHORT on GBPUSD analysis, with 54% of traders currently holding long positions (at the time of writing). According to DailyFX, they usually take a contrarian view to crowd sentiment but due to the recent shift in long and short positions, we have come to a cautious bias.
Minimize Loss Maximize Profit, Use the Following Account! Want to Earn Tens of Millions Consistently? Do This!

Pound Sterling Analysis & Key Points

  • UK inflation surges as energy costs continue to hurt consumers.
  • Chancellor Jeremy Hunt's Autumn Statement in focus tomorrow.
  • Pound falls post-CPI.
GBPUSD analysis will be updated daily. Stay informed with other news through the GIC Journal, including crypto, gold, commodities, and more. When trading at GIC, use an ECN account to trade with low spreads. Don't forget to also join the GIC Prize Festivities to win a total of billions in prizes without a lottery!