GBP/USD Strategy - U.S. Inflation Data to Be Released, High Volatility Across Commodities Today

Fundamental Analysis:

Ahead of the release of U.S. CPI data this evening, forex and commodity markets are experiencing intense short-term fluctuations, reflecting a fierce battle between bulls and bears. The probability of a Fed rate cut next week is now close to 90%, and regardless of the data, this expectation is unlikely to change. However, investors will use the data to assess policy directions for the next year. Most institutions currently predict that the Fed will pause rate cuts at its January meeting and adopt a cautious approach toward easing policies, as policies under U.S. President-elect Trump are likely to reignite inflationary pressures.

For short-term trading, it's important to note that commodities, forex, and stock indices have all exhibited volatile upward and downward swings today, suggesting that traders are adjusting their positions ahead of the data release. This could indicate an increased risk of volatility this evening.

Technical Analysis:

On the 15-minute GBP/USD chart, prices are within an upward channel. If prices correct to the supply and demand zone, long positions can be entered in this zone before the correction is complete. Stop-loss should be placed below the bottom of the range, and targets can be set at a 1:1 risk-reward ratio or extended to the current high as a flexible goal.

Recommendation: Enter long at 1.27443 or better, with a stop loss below 1.27234 and a target at 1.27653.

Support Level: 1.27234; Resistance Level: 1.27794

[The above content is for reference only and does not represent the platform's position. Stick to your strategy and implement proper risk control.]