Comprehensive GBP/USD Analysis for January 11, 2024

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GBP/USD for 11th January 2024. 

GBP/USD Key Takeaways 

• US inflation data: The United States will release the latest CPI data tonight, and the market expects the core annual rate to drop to less than 4%. This may make the Federal Reserve more confident that inflation will return to its 2% target by mid-2024, at which time the dollar may experience a larger decline. 
• BOE policy differences: There is no important financial data in the UK this week, and the market will focus on the statements made by Bank of England officials. If the word is less specific about monetary policy, the market still expects the BOE to cut interest rates by about 15 basis points lower than the United States. 

GBP/USD Technical Analysis

GBP/USD Daily Chart Insights

• Stochastic Oscillator: The indicator once again issued a bull signal at the 50 midline, suggesting that bulls have the upper hand in the short term. Based on the fact that the current exchange rate is still in the consolidation range, we can pay attention to long opportunities after waiting to break through the high point. 
• Price Action: The exchange rate formed a doji bar after touching the black 33-day moving average, and the current exchange rate fluctuates within the range. Such a harami pattern means that investors still need to wait market price to make a clear. 

GBP/USD 1-hour Chart Analysis

• Stochastic Oscillator: The indicator has entered the overbought area and continues to rise without forming a top divergence pattern, suggesting that bulls currently have the upper hand. 
• Trend line: A downward trend line has been formed since the high point on January 5. The exchange rate is about to encounter resistance during the Asian session. Beware that GBP/USD encounters resistance and falls back into the rectangular range. 

Trading Central Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.2710, 
• Bullish Scenario: Bullish sentiment prevails above 1.2710, first target 1.2765, second target 1.2785; 
• Bearish Outlook: In a bearish scenario below 1.2710, first target 1.2690, second target 1.2670. 

Conclusion