Inflation accelerates, putting pressure on UK households' finances

Fundamental analysis:

The pound remained volatile around 1.35830 against the dollar. The surge in energy prices and the impact of the new crown virus epidemic on the global economy caused inflation to accelerate, which also put pressure on the finances of many British households. Chancellor of the Exchequer Sunak, who has announced measures to cushion the blow from a 54% rise in energy tariffs in April, is under pressure to do more in his March 23 budget. Sunak said after the data on Tuesday: “Our debt has grown significantly and public finances are facing further pressures, including from rising inflation. It is crucial to keep public finances on a sustainable path. Importantly, so that we can continue to help the British people in times of need without leaving future generations with a high debt burden."

GBPUSD GBPUSD - 4-hour candlestick chart shows:

Technical Comments: The Bollinger Bands indicator channel oscillates for a long time, and the high level is weak and retraces to around 1.35370. After finishing, it is entangled in the fluctuations in the middle and lower rails. The short-term bearish momentum continues to move downwards slowly, and the MACD indicator is weak in the bullish area. The finishing retraced to hovering around the 0 axis, and the RSI indicator was finishing in a narrow range near the 50 equilibrium line;

Long-short turning point: 1.36001

Suppression bit: 1.36229, 1.36450

Support levels: 1.35591, 1.35370

Trading strategy: bearish below 1.36001, target 1.35591, 1.35370

Alternative strategy: bullish above 1.36001, target 1.36229, 1.36450

The above analysis is a personal opinion and is for reference only.