If the Bank of England continues to raise interest rates, it may not be enough to save the pound

Fundamental analysis:

Sterling remained volatile around 1.25984 against the US dollar. Bank of America strategists said that in view of the challenges that sterling usually faces in emerging markets, investors should hedge the sterling crisis. If the Bank of England continues to raise interest rates, it may not be enough to save the pound. The country's current account deficit, the deterioration of relations with the EU on the issue of Northern Ireland, and questions about the credibility of the central bank may form a "perfect storm".

GBPUSD GBPUSD - 4-hour K-line chart display:

Technical comments: the upper rail section maintained in the Bollinger belt index channel for a long time continued to move up slowly in a narrow range. After the high level reached the node near 1.26660, it began to move back. The amplitude space gradually narrowed, and the short power waited for the opportunity to enter. The MACD index was in the long area, Weichai was slowly moving back, and the RSI index was in a weak position near the 50 equilibrium line;

Multi empty turning point: 1.26208

Pressing position: 1.26736, 1.27244

Support position: 1.25473, 1.25040

Trading strategy: bearish below 1.26208, target 1.25473, 1.25040

Alternative strategy: bullish above 1.26208, target 1.26736, 1.27244

The above analysis is a personal point of view and is for reference only.