GBP/USD remains in familiar ranges, but BoE is a major focus now
FXStreet · 24 Jun 2022 225 Views
  • GBP/USD bears capping the bull's advances in a familiar sideways channel. 
  • The focus is on the BoE for the foreseeable future. 

At 1.2247, GBP/USD is trying to make headway within a critical hourly range, but the bears are capping the advances at the high of 1.2270. The price recently dropped to a low of 1.2240 as the US dollar jumps back to life.

There has been little in the way of a catalyst in what is otherwise a slow start to the end of the week in Asia. The yen was pushed lower and that is having an effect across the DXY index, pressuring the US dollar's rivals. At the time of writing, DXY is trading at 104.46, near the highs of the day at 104.51 while USD/JPY jumped back above 135 the figure to print 135.22 the high for the day so far. 

In the data, the PMI's preliminary composite index held at 53.1 in June, above the median forecast of 52.6 in a Reuters poll of economists and unchanged from May. But the PMI's measure of new orders effectively stagnated as it fell to 50.8, the lowest in over a year. Factory orders dipped below the 50.0 growth threshold to 49.6.

''The UK is in danger of being the slowest-growing major advanced economy next year, with the highest inflation rate and the biggest current account deficit,'' Kit Juckes at Societe Generale said.

BoE in focus

Meanwhile, with a focus on domestics, the UK's inflation print coupled with that more recent UK PMI outcome has underpinned sentiment that the Bank of England, BoE, is on track to hike by a 50bps rate hike in the next meeting. The UK's central bank is watching for signs that the recent jump in inflation, which hit a 40-year high of 9.1% in May, might turn into a permanent problem for the British economy.

The BoE said last week it was ready to act "forcefully" if it saw signs of persistent inflation pressures, suggesting it might raise interest rates by more than its standard quarter-point increase despite fears of a recession. Overnight index swaps are continuing to price in 50bp moves by the BoE at the next 3 meetings. This lays out a path that would leave Bank Rate above 3% by year-end.

GBP/USD

Overview
Today last price 1.225
Today Daily Change -0.0008
Today Daily Change % -0.07
Today daily open 1.2258
Trends
Daily SMA20 1.2393
Daily SMA50 1.2497
Daily SMA100 1.2884
Daily SMA200 1.3199
Levels
Previous Daily High 1.2294
Previous Daily Low 1.217
Previous Weekly High 1.2407
Previous Weekly Low 1.1934
Previous Monthly High 1.2667
Previous Monthly Low 1.2155
Daily Fibonacci 38.2% 1.2218
Daily Fibonacci 61.8% 1.2247
Daily Pivot Point S1 1.2187
Daily Pivot Point S2 1.2117
Daily Pivot Point S3 1.2063
Daily Pivot Point R1 1.2312
Daily Pivot Point R2 1.2365
Daily Pivot Point R3 1.2436

Affected Trading Instrument

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