Post #16144

GBP Is Getting Close To 3 Key Moving Averages GBP is basically stuck in place here, with markets still trying to make sense of the Middle East situation. Even with a ceasefire extension, there’s no real clarity. On the macro side, inflation ticked higher, but nothing aggressive. It just reinforces the idea that price pressures are still there, especially with the energy shock in the background. Markets are still pricing in at least one hike, maybe two, but conviction is low. The Bank of England is in a tough spot, balancing sticky inflation against signs that growth could start to slow. So for GBP/USD, it’s a wait-and-see environment. You’ve got inflation holding up, which supports the currency, but uncertainty around growth and policy is capping upside. A key cluster of moving averages — the 20, 50, and 200-day SMAs — is converging around 1.3400. A pullback into this zone could act as a key test, where buyers step in and reveal the true appetite for GBP. - Alan