GBP/USD – The Cable Pair Gives Strong Bullish Signals

Bullish View

Take Profit: 1.2400
Stop Loss: 1.2200
Timeline: 1 day

Bearish View

Sell Stop: 1.2283
Take Profit: 1.2200
Stop Loss: 1.2325

The cable pair price has now touched its highest level since February 2nd. The riss to multi-week highs happened as a result of the UK consumer inflation figures being robust as well as the latest interest rate announcements from Fed. Since the UK is still trapped under the clutches of inflation, the next BoE meeting and decisions will be very important for the pair. The collapse of major banks is hinting at a crisis that has affected the entire banking sector. The all-time high inflation along with the banking crisis is not a great combo for the economy and BoE will have a hard time in making a final decision to resolve the complex issues.

Speaking of technical analysis, the current bullish trend is justified by the Ichimoku cloud and 50-period MA. We also saw the RSI moving a little below the overbought level and the pair has also moved to the 78.6% Fibonacci Retracement level. The charts are giving away some hints for the uptrend going on for a while as more buyers may enter the market to go long on the cable pair.