GBP/USD Strategy - U.S. Treasury Yield Rebound Pressures Non-U.S. Currencies

Fundamental Analysis:

The yield on the U.S. 10-year Treasury note climbed again yesterday, reflecting the market's continued pricing of the Federal Reserve maintaining restrictive interest rates for an extended period. This simultaneously strengthened the U.S. dollar, limiting the rebound potential of non-U.S. currencies. Looking ahead, given that current economic data does not support a loosening of monetary policy by the Fed, non-U.S. currencies are likely to remain in a weak trend.

Technical Analysis:

The one-hour chart shows lower highs and lower lows, indicating a bearish trend. Therefore, a two-tiered short-selling strategy is recommended, with stop-loss triggered if the price breaks above the previous high and take-profit set at the extended downside targets.

Trading Recommendations:

Short GBP/USD at 1.25479 and 1.25933.

Stop-loss: 1.26666. Target: 1.24293.

Support Level: 1.24293 Resistance Level: 1.26666

Disclaimer: The above content is for reference only and does not represent the platform's position. Investors should exercise their own judgment, manage risks effectively, and take responsibility for their profits and losses.