Forex GBP/USD Daily Video, May 10, 2024

[Sive Morten]

Good morning,

As we've promised yesterday - let's take a look at GBP this time. It is really big bets now on the table and everything depends on what will happen around 1.2426 support and 1.2630 resistance areas:

 

[soul rebel]

Thanks for your input Sive, as always there is value in your analysis

 

[Brett Reynolds]

I took a long on Cable 23rd April as i saw potential of Reversal as market was heavily sold down on Monday 22nd April. This was a Bear Trap'. I took the profit on trade at $1.25 last week.
The Euro & Cable are in the middle of indecision at the moment and it's difficult now to take 'any' position.
Next weeks CPI on wednesday will be a BIG moment..& it's NOT a given' that the $US will strengthen for rest of this year.!?

 

[Sive Morten]

I took a long on Cable 23rd April as i saw potential of Reversal as market was heavily sold down on Monday 22nd April. This was a Bear Trap'. I took the profit on trade at $1.25 last week.
The Euro & Cable are in the middle of indecision at the moment and it's difficult now to take 'any' position.
Next weeks CPI on wednesday will be a BIG moment..& it's NOT a given' that the $US will strengthen for rest of this year.!?

In general recent comments sound a bit dovish. Head of the Central Bank of England:
- it is likely that the Central Bank will have to reduce the rate in the coming quarters
- we will need to make policy less restrictive
- the Central Bank may have to cut rates more than what the markets are currently expecting

Thus, although monthly upside butterfly looks thrilling, it could not be formed, except if the US urgently will start cutting rate as well by some reason. Since they have more than $1Trln in cash reserves, hardly this will happen in 2024. Taking "2+2", odds are not in favor of the GBP strength...