FX.co ★ GBP/USD

Hello everyone! I correctly predicted yesterday’s rise in GBPUSD. The currency pair has completely offset the July decline, but now it faces a difficult task. Today GBPUSD will begin an assault on the strong resistance zone of 1.3450–1.35, and a breakout of this zone will break the medium-term downtrend that has been in place since May. The rally was driven by two factors. First, the prime minister’s departure from office is taking place under a clear power transition. UK markets have calmed down and the yield on 10-year government bonds (gilts) is stable at 4.80%. This attracts foreign capital into the country and locally strengthens the pound. The head of the Bank of England has ruled out any rate cuts until the end of the year. This monetary policy certainty sharply contrasts with the uncertainty within the Fed. 9 out of 18 policymakers want a rate hike, although the head, Kevin Warsh, is clearly opposed.