💡 GBPUSD: Nice scenario for downtrend
➡️The latest data indicates a significant decline in the UK's annual Consumer Price Index (CPI) rate, dropping from 6.7% in September to 4.6% in October. This marks the lowest figure in two years, falling below the consensus estimates of 4.8%. The notable decrease in CPI reflects a downward trend in inflation, primarily attributed to the impact compared to the same period last year and a decrease in energy prices.
➡️This development suggests that there is potential for the central bank to initiate interest rate cuts by the end of 2024. However, the decision hinges on various factors, including the strength of the labor market and the overall economic conditions.
➡️In response to the released data indicating a more substantial than expected cooling of UK inflation in October, there is a possibility of a decline in GBP/USD. This further reinforces expectations that the Bank of England may implement interest rate cuts by the middle of the next year. Observations on the H4 chart reveal the GBP/USD price approaching the 48-hour moving average, and the MACD histogram bar contracting, indicating potential market adjustments.
➡️This development suggests that there is potential for the central bank to initiate interest rate cuts by the end of 2024. However, the decision hinges on various factors, including the strength of the labor market and the overall economic conditions.
➡️In response to the released data indicating a more substantial than expected cooling of UK inflation in October, there is a possibility of a decline in GBP/USD. This further reinforces expectations that the Bank of England may implement interest rate cuts by the middle of the next year. Observations on the H4 chart reveal the GBP/USD price approaching the 48-hour moving average, and the MACD histogram bar contracting, indicating potential market adjustments.
