Technical Analysis: GBPUSD

GBPUSD hit a 3-month high

On Wednesday, GBPUSD hit a 3-month high as the US dollar index plummeted to a 1-week low.

Most officials support the Fed in raising the interest rate at slower pace

On Wednesday, November meeting minutes released by the Fed show most officials supported the Fed in raising the interest rate at slower pace. Conferees agreed that there were no signs of easing inflationary pressure, but they were not uncertain on the final federal fund rate. The final target of the federal fund rate is more important than interest rate hike as restrictive monetary policies were adopted.

The bank of England need raise the interest rate further to curb inflation

The BOE’s chief economist Huw Pill said the BOE should adopt monetary policies to ensure financial stability, adding that further measures need to be taken to see that the inflation reaches the target of 2%. He said the BOE would adopt monetary policies in accordance with economic data.

Technically speaking, the market trend is bullish 

On the chart of the day, GBPUSD increased. The market trend is bullish. In terms of technical indicators, MACD went upwards after golden cross occurred, showing DBPUSD will rise further. Investors should focus on whether GBPUSD will break through the resistance at 1.230.

On the 4-hour chart, GBPUSD continued rising, supported by the ascending trend line. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing the market trend is bullish. GBPUSD will jump further if it is steady above the support at 1.196.

Key resistance: 1.220, 1.230

Key support: 1.202, 1.196

In summary, GBPUSD will rise further as the Fed released dovish statements and the US dollar index declined. Investors should focus on UK CBI Industrial Orders (November) during the day.