US:

• The Fed left rates of interest unchanged as
  anticipated.
• The macroeconomic projections had been revised larger
  because the financial system confirmed a lot stronger resilience than anticipated and the Dot Plot
  confirmed that almost all of members nonetheless expects one other price hike by the top
  of the 12 months with much less price cuts in 2024.
• Fed Chair Powell
  reaffirmed their knowledge dependency however added that they are going to proceed fastidiously as
  they’re looking for the optimum level of charges. Powell additionally added that the
  tender touchdown will not be the bottom case in the mean time, though they’re aiming for
  it.
• The newest US CPI got here
  consistent with expectations, so the market’s pricing remained roughly the identical.
• The labour market
  displayed indicators of softening though it stays pretty strong as seen additionally
  yesterday with the robust beat in Jobless Claims.
• The market doesn’t count on the Fed to hike once more at
  the second.

UK:

• The BoE stored rates of interest unchanged.
• The central financial institution is leaning extra in direction of
  holding rates of interest “higher for longer” but it surely stored a door open for additional
  tightening if inflationary pressures had been to be extra persistent.
• Key financial knowledge like the newest employment report confirmed a very excessive wage development
  regardless of the rising unemployment price, however the newest UK CPI missed expectations throughout the board.
• The UK PMIs final month missed expectations throughout the
  board with the Services sector plunging into contraction.
• The market doesn’t count on the BoE to
  hike anymore.

GBPUSD Technical Analysis –
Daily Timeframe

On the every day chart, we will see that GBPUSD has
ultimately breached the key 1.23 level, and this has opened the door for a fall
into the 1.18 deal with. The worth now appears overstretched though basically
there’s nothing left to maintain the GBP. From a threat administration perspective,
the sellers would have a higher threat to reward setup if the value pulled again
all the way in which as much as the downward trendline the place we
can even discover the purple 21 transferring common for confluence. Such a
large rally although is difficult to examine in the mean time.

GBPUSD Technical Analysis –
four hour Timeframe

On the four hour chart, we will see that the pair has
been respecting the minor downward trendline with the final selloff coming off
of the trendline following the extra hawkish than anticipated FOMC dot plot. If we
get a pullback, the sellers are prone to lean on the minor trendline once more
the place we will additionally discover the confluence with the purple 21 transferring common and the Fibonacci retracement ranges.
The consumers, alternatively, are prone to step in right here with a outlined threat
under the low to place for a rally and improve the bullish momentum if the
worth breaks above the minor trendline.

GBPUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we will see extra
intently the bearish setup with the key assist at
1.2308 now turned resistance and the trendline. The sellers are prone to
stay in management and pile in on each pullback. The consumers, alternatively,
are prone to pile in at each breakout.

Upcoming Events

Today now we have the UK
Retail Sales and the Flash PMIs for each the UK and the US.