GBP/USD Outlook (18 March 2022)
Overall, GBP/USD is trending downwards. Recently, GBP/USD bounced off the resistance zone of 1.32200.
The Bank of England (BoE) hiked interest rate by 0.25% yesterday during their monetary policy meeting. However, the central bank revised its language on future rate hikes from the previous “likely appropriate in the coming months” to “might be appropriate in the coming months”, indicating a lower likelihood of future rate hikes. Furthermore, all but one committee member voted for a hike of 0.25% while the other member voted for a hike of 0.50%. This voting result is less hawkish when compared to the previous result of five members voted for a hike of 0.25% and four voted for a hike of 0.50%. As a result of this dovish rate hike, GBP took a hit and weakened across the board.
GBP/USD’s next support zone is at 1.30400 and the next resistance zone is at 1.32200.
Look for short-term selling opportunities of GBP/USD.
The Bank of England (BoE) hiked interest rate by 0.25% yesterday during their monetary policy meeting. However, the central bank revised its language on future rate hikes from the previous “likely appropriate in the coming months” to “might be appropriate in the coming months”, indicating a lower likelihood of future rate hikes. Furthermore, all but one committee member voted for a hike of 0.25% while the other member voted for a hike of 0.50%. This voting result is less hawkish when compared to the previous result of five members voted for a hike of 0.25% and four voted for a hike of 0.50%. As a result of this dovish rate hike, GBP took a hit and weakened across the board.
GBP/USD’s next support zone is at 1.30400 and the next resistance zone is at 1.32200.
Look for short-term selling opportunities of GBP/USD.
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