ANALYSIS
NQ100 Finds Support from PPIApr 14
Recovery in GBPUSD Has Not Been Permanent
Yesterday, we saw that the pound got a reaction when the new Finance Minister Jeremy Hunt announced that the income tax reduction plan would be taken off indefinitely. However, as of today, speculation that the Bank of England (BoE) will delay the sale of government bonds until the markets calm down has hampered the pound's recovery. Technically speaking, the parity confirms the downtrend with the strong resistance it faced at the 50-period exponential moving average. If the critical 1.1200 support on the declines can end, the losses may deepen to 1.1065. In addition, the 1.1470 – 1.1600 range above will also serve as a stabilization zone.
