GBP/USD Strategy - Risk Aversion Sentiment Spreads, USD Bulls Gain Strong Support

Fundamental Analysis:

The British pound has been continuously declining, hitting a six-month low. Escalating global tensions have increased safe-haven demand, driving up gold, the U.S. dollar, and the Japanese yen, while pressuring risk-sensitive non-USD currencies. Additionally, recent U.S. economic data shows robust performance, and tonight's U.S. PMI data is expected to rise. If confirmed, this could further delay the Federal Reserve's rate cuts, potentially affecting the expectation for a December rate cut, leaving little room for a rebound in non-USD currencies.

Technical Analysis:

The 15-minute GBP/USD chart shows prices within a descending channel. Short positions can be taken in the supply zone before the price completes a correction. Stop-loss should be placed above the channel's top, with a risk-reward ratio of 1:1 or targeting the previous low as a flexible target.

Trading Strategy: Short at 1.25905 or better, stop loss above 1.26051, and target at 1.25759.

Support Level: No pre-set support level due to strong downtrend. Resistance Level: 1.26051.

Disclaimer: This content is for reference only and does not represent the platform's stance. Stick to your own strategy and ensure effective risk management.