GBP/USD Strategy - Dollar Ends Three-Day Decline, Market Focuses on Fed Rate Outlook and Trump's Policies

Fundamental Analysis:

Although the UK CPI released yesterday exceeded expectations, the pound failed to rally as the market believes the Bank of England is unlikely to continue cutting rates this year, which could harm an already weak economic environment. Meanwhile, investors are awaiting more clarity on Trump’s new policies. Coupled with rising inflation data and the probability of a December Fed rate cut dropping below 60%, bearish momentum on the dollar is struggling to gain traction, limiting the rebound space for non-USD currencies.

Technical Analysis:

The 15-minute GBP/USD chart shows the price within a descending range. If the price corrects to a supply zone, short positions can be taken at the supply level before the correction completes. Stop-loss should be set above the range top, and a 1:1 risk-reward ratio or an extended target to the previous low can be used as a flexible target.

Trading Suggestion: Consider shorting GBP/USD at 1.26617 or better, with a stop-loss above 1.26748 and a target of 1.26486.

Support Level: 1.26305 Resistance Level: 1.26748

The above content is for reference only and does not represent the platform’s stance. Stick to your own strategy and manage risks effectively.