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GBPUSD Market Update

10/28/2022 1:41 PM

The GBP/USD pair is actively growing, taking advantage of the correction of the American dollar, and is now trading around 1.1570.

Markets hoped that the new British Prime Minister, Rishi Sunak, would soon release his strategy for dealing with the economic crisis, but this event was postponed to November 17. Perhaps this is since next week there will be a regular meeting of the Bank of England, at which a decision can be made to raise interest rates by 75.0 basis points, as inflation in the UK has returned to a historical high of 10.1%, and the official chose not to intervene in the economic model immediately but allowed it to realize its planned parameters before starting global changes.

The US dollar reacted slightly to yesterday's labor market and gross domestic product (GDP) data and exceeded 110.000 in the USD Index. US Q3 GDP showed economic growth of 2.6%, while analysts expected growth of 2.4%, and the Initial Jobless Claims amounted to 217.0K, slightly higher than 214.0K a week earlier, which contributed to the increase in the total number of recipients of benefits to 1.438M from 1.383M a week earlier.

The trading instrument moves within the long-term downward channel, coming close to the resistance line.

Technical indicators have reversed and keep a buy signal: the range of fluctuations of the EMA on the Alligator indicator is expanding upwards, and the histogram of the AO oscillator is forming bars, moving into the buy zone.

Resistance levels: 1.1685, 1.2050. | Support levels: 1.1400, 1.1000.

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