GBP/USD – The Cable Pair May Continue Rising as Uk Recession Fears Fades.
Take Profit: 1.2600
Stop Loss: 1.2400
Timeline: 1-2 days
Sell Stop: 1.2450
Take Profit: 1.2350
Stop Loss: 1.2550
Recently the cable pair jumped to 1.2521, which was the highest price recorded in the last 10 months. The latest UK economic data has been one of the key reasons for this shift as the recession fears appear to be fading. The economy has shown some resilience contrary to the predictions which stated the economy might slip to its rock bottom this year.
Not only did the UK look to be less affected from the global banking crisis, but also published strong consumer confidence data. it also saw the unemployment rates being at the lowest levels historically. Recently the BoE chief made a statement that the bank will stick to its rate hike policy for now and economists are anticipating two 0.25% rate hikes in upcoming meetings. The pair will be responding to the key economic data release from S&P.
On the price charts, we saw a rising wedge pattern which took weeks for the formation but it was invalidated by the pair on Tuesday itself. The bullish trend has been going strong for the last few weeks. The pair moved over the peak price recorded on 23rd Jan at 1.2445, which was also the key resistance point. We can see the 25-period and 50-period MAs lending some support to the pair. So, we can surely look forward to more uptrends favouring the cable pair buyers.