ANALYSIS
NQ100 Finds Support from PPIApr 14
GBPUSD:Parity Declines by Recession Concerns
The Bank of England (BoE) increased the policy interest rate by 50 basis points to 1.75 percent by making the biggest tightening in 27 years, which supported the parity to some extent. However, in the text published by the bank, the prediction that the UK economy will enter a recession in the 4th quarter and the recession will last for five quarters causes the pound to lose value. In addition, the hawkish statements from the US Federal Reserve (FED) Board Members are also putting pressure on parity. Technically, the GBPUSD pair, which is headed to deepen its downward movements by ending the ascending channel movement, can deepen its losses to the 1.1970 support, which points to the Fibonacci 61.8% retracement line, if it prints below the 1.2040 level. In possible upward movements, 1.2165 resistance can be followed.
