Sterling remained volatile around 1.16810 against the US dollar. Goldman Sachs recently lowered its UK economic forecast, adding to the pessimism surrounding sterling. It is also expected that the recession will start later this year, as the soaring inflation will affect the disposable income of households and thus hit consumption. It is expected that the British economy will begin to decline in the fourth quarter of 2022 and shrink by 0.6% in 2023.
GBPUSD GBPUSD - 4-hour K-line chart shows:
According to the 4-hour chart, the short power maintains a step-by-step shock downward trend, the market continues to decline well, the MACD index maintains consolidation and translation in the short area, and the RSI index maintains consolidation in the short area below the 50 equilibrium line;
Long and short turning point: 1.16810
Pressing position: 1.17262, 1.17728
Support position: 1.16181, 1.15833
Trading strategy: bearish below 1.16810, targets 1.16181 and 1.15833
Alternative strategy: bullish above 1.16810, targets 1.17262 and 1.17728