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GBPUSD Market Update

12/15/2022 12:34 PM

The GBP/USD pair shows neutral dynamics, trading around 1.2379 against the backdrop of a decline in the US dollar.

In the UK, consumer price data was published: the indicator rose by 0.4% in November, which led to a slowdown to 10.7% YoY from 11.1% a month earlier, while the core index, which does not take into account the cost of products food and fuel fell to 6.3% from 6.5% a month earlier, although analysts did not expect changes. The data reflects the reduction of inflation at a faster rate, but this is still not enough for positive dynamics in the GBP/USD pair.

The decline in US inflation to 7.1% from 7.7% a month earlier may have been one of the reasons for yesterday's decision by the US Federal Reserve to raise interest rates by only 50.0 basis points. According to the head of the regulator, Jerome Powell, the pace of monetary tightening is no longer of decisive importance, and the decision on the further dynamics of the indicator will be made at each specific meeting, depending on the incoming macroeconomic statistics. The agency's forecasts have stayed the same: it is expected that by the end of 2023, the interest rate will reach 5.1%, and only by the end of 2024 will it begin to decrease to 4.1%.

On the daily chart, the trading instrument moves within the local ascending channel, trading near the resistance line.

Technical indicators 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 rising bars in the buying zone.

Resistance levels: 1.2450, 1.2800. | Support levels: 1.2290, 1.1940.

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