In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GBPUSD for Aug 15, 2024. 

Key Takeaways 

• UK inflation finally slowed: UK CPI monthly rate recorded -0.2% in July, the largest drop since January 2024, ending the growth trend since February. Traders fully priced in two more rate cuts by the Bank of England this year. 

• UK-US interest rate differential: The Bank of England announced its first rate cut in more than four years in July, lowering the benchmark interest rate to 5%. The decision to cut interest rates before the Fed has led to a depreciation trend for the pound in the short term. However, as the Fed’s rate cut approaches, the pound may reverse and appreciate in the future. 

Technical Analysis 

Daily Chart Insights 

• Stochastic Oscillator: The indicator left the oversold area and sent a bullish signal, and then the exchange rate rose strongly, clarifying the accuracy of the signal. Both the fast and slow lines have broken through the 50 median line, suggesting that the exchange rate still has the possibility of further appreciation. 

• Clear trend: After breaking the upward trend line, the exchange rate fell below the previous low of 1.26113, and then a false breakout occurred, continuously standing on the trend line and short-term moving average group (red 33-day moving average and black 65-day moving average). The clear rise makes the pound sterling against the US dollar have a certain probability of reaching the previous high exchange rate. 

1-hour Chart Analysis 

• Stochastic oscillator: The indicator is about to send a long signal in the oversold area, suggesting that the short-term short-selling force is about to subside, and the pound sterling against the US dollar may usher in an increase. 

• Support price: The pound sterling against the US dollar has currently fallen below the red 33-period moving average, and is in a downward correction trend in the short term, looking down at the proportional Fibonacci extension level of 1.28043. 

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 1.2860, 

• Bullish Scenario: Bullish sentiment prevails above 1.2860, first target 1.2875, second target 1.2890; 

• Bearish Outlook: In a bearish scenario below 1.2860, first target 1.2800, second target 1.2780. 

Conclusion 

To navigate the complex world of trading successfully, it’s imperative to stay informed and make data-driven decisions. Ultima Markets remains dedicated to providing you with valuable insights to empower your financial journey. 

For personalized guidance tailored to your specific financial situation, please do not hesitate to contact Ultima Markets. 

Join Ultima Markets today and access a comprehensive trading ecosystem equipped with the tools and knowledge needed to thrive in the financial markets. 

Stay tuned for more updates and analyses from our team of experts at Ultima Markets. 

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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.  

Willy

Willly is a skilled and experienced market analyst who has been analyzing financial markets for over 5 years. He currently serves as a Market Analyst at Ultima Markets, a leading financial services company. Willy brings a wealth of expertise in fundamental and technical analysis, having previously worked as Head of Financial Market Analyst at GCMAsia. There, he oversaw the research department and developed educational materials to build clients' financial knowledge. He also collaborated cross-functionally to amplify sales and achieve business goals. Prior to that role, Willy gained valuable experience as a Financial Market Analyst at the same company. He generated daily and weekly reports, conducted market briefings, and provided trading strategies through webinars. Read his latest market analyses on the Ultima Markets News & Analysis.

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