In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GBPUSD for June 20, 2024.
Key Takeaways
- UK inflation: The annual inflation rate in the UK fell to 2% for May while services sector inflation remains “sticky” than expected.
- Bank of England: The Bank of England will announce its latest interest rate decision later today. The market expects interest rates to remain unchanged while placing their utmost focus on the central bank’s policy guidance for the year.
Technical Analysis
Daily Chart Insights
- Stochastic oscillator: The indicator is suspected to form bullish signal slightly above oversold region, suggesting possibility of a short-term bullish bias albeit subject to higher chances of a sudden reversal. Nonetheless, due to lack of signal and clarity in price action, it is suggested to wait for the time being.
- MA support: The support formed by 65-MA line (black) and 33-MA line (red) provides bullish support from the downside. Nonetheless, if the pair closes below both lines, it may cement bearish bias thereafter.
4-hour Chart Analysis
- Stochastic oscillator: The indicator enters overbought region and forms bearish signal, suggesting short-term downside bias. It is suggested to wait for both signal lines to leave the overbought region before entering the market.
- MA resistance: While the previous rebound uptrend remains intact, it is limited by the moving average line (forming a strong resistance for the time being). If the pair fails to close above this threshold, it will open to a higher possibility of further downside thereafter.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 1.2700,
- Bullish Scenario: Bullish sentiment prevails above 1.2700, first target 1.2740, second target 1.2760;
- Bearish Outlook: In a bearish scenario below 1.2700, first target 1.2685, second target 1.2665.
Conclusion
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Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
