GBPUSD: high move up

Sterling remained volatile around 1.23403 against the U.S. dollar, and could extend its gains against the U.S. dollar as the Bank of England and the Federal Reserve diverge in signals about future monetary policy. Bank of England Governor Bailey said the UK banking system is in good shape and further interest rate hikes are possible if inflationary pressures persist. By contrast, the Fed is signaling more cautiously about future policy at a time when the banking sector is under pressure.

GBPUSD - 4-hour K-line chart shows:

The 4-hour chart: the high order is moving up, the market is still bullish, and there are signs of continued upward movement in the short term. The MACD index is in the long-term area to maintain order, and the RSI index is in the long-term area to maintain lingering;

Resistance levels: 1.23632 1.23873

Support levels: 1.23031 1.22778

Trading strategy: bullish above 1.23274, target 1.23632 1.23873

Alternative strategy: bearish below 1.23274, target 1.23031 1.22778