Chapter 40 GBPUSD changing direction to the downside
16/12/2022
Summary
US interest rate decision result lead the market
Fundamental analysis
It's the weekend We can see the strength in the US dollar Because the U.S. central bank raised rates by 50 basis points on Wednesday, slowing down from four back-to-back 75 hikes, although Fed Chair Jerome Powell said recent signs of slowing inflation had not brought any confidence yet that the fight had been won, And we don't have high impact news On both the USD and the GBP So we expect the situation will keep same as U.S. dollar strength
Technical analysis
We see in the 1H diagram chart The trend has changed to the downside After we see the 1H anchors have been broken at 1.23560/ 122557 We expect the price to pull up to the previous Demand zone which has now become the supply zone and from that point will create new lower height And then the price will continue down to the previous demand zone at 1.21066
Trading Recommendation
Trading Direction: Short
Entry Price: 1.22557
Target Price:1.21066
Stop Loss:1.23560
