GBP/USD – The Outlook Remains Bearish for the Cable Pair
Take Profit: 1.1700
Stop Loss: 1.2000
Timeline: 1-2 days
Take Profit: 1.2000
Stop Loss: 1.1700
The bearish outlook is still strong for the cable pair after BoE officials warned about the British Pound and Fed Chair Powell’s hawkish remarks about interest rate hikes. The price dropped and touched 1.1830 and this was nearly a 5% decline from the peak price this year. There was a statement from the BoE official, Catherine Mann that the British Pound may keep falling further in the coming months. She also suggested that this weakness may accelerate the inflation as well.
On the price charts, we saw that the RSI was on a decline alongside the stochastic oscillator. The pair price also dropped below the 50-day MA and a bearish breakout was visible on the charts following the remarks from Powell and Catherine Mann. The price slided below the key support at 1.1924 and this was also the lower side of the descending triangle pattern formed on the charts. So, looking at the whole picture the overall outlook is very much bearish for the GBP/USD pair.