UK fiscal stimulus has limited impact on Sterling

Fundamental analysis:

The GBP / USD remained volatile around 1.26249. The package of fiscal stimulus measures announced by the UK has limited effect on the GBP, which may only stabilize the GBP at the current level; The market's concern about the UK's fiscal deficit and the resistance to investment caused by the British government's imposition of windfall profits tax on energy companies may curb the rise of sterling; In addition, the UK fiscal stimulus measures may alleviate the market's concern that the Bank of England is too aggressive in raising interest rates.

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

Technical comments: the upper rail section of the Bollinger belt index channel continued to fluctuate and rise, and began after the high level reached the node near 1.26660. In the short term, the bull power continued to move upward, and the Bollinger belt index began to slowly open its mouth after rising in the upward trend. The MACD index maintained the consolidation and translation in the bull area, and the RSI index maintained a narrow range at the 50 balanced online side;

Multi empty turning point: 1.25714

Pressing position: 1.26660, 1.27238

Support position: 1.25128, 1.24542

Trading strategy: bullish above 1.25714, target 1.26660, 1.27238

Alternative strategy: bearish below 1.25714, target 1.25128, 1.24542

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