GBPUSD is calm before the storm towards 1.27

GBP/USD continues to stay in positive territory above 1.2600 during Wednesday's American session. The pair benefited from improved risk sentiment on Tuesday, recording a 0.5% increase and offsetting much of Monday's losses. The decrease in US Treasury bond yields led to the depreciation of the US dollar against its major rivals on Tuesday. Meanwhile, Bank of England (BoE) Deputy Governor Sarah Breeden stated on Wednesday that she is less concerned about further increases in the bank interest rate, emphasizing her focus on the duration of rates at current levels. After a relatively static day, the market created a new demand area after a slight increase, targeting liquidity around 1.2330. Now, I expect a retest of the demand area with a subsequent increase towards 1.2730. I will evaluate the situation tomorrow morning during the opening of the London markets to see if there are conditions for a long entry. Wishing everyone good trades and hoping for increased volatility in the coming days.

Comment:

GBPUSD did a retracement inside the demand zone. Now I'm waiting for the US news and if there will be the right conditions, I will look for a long entry at M15.

Comment:

Good reaction on the demand zone but I will share a new analysis. The price broke the demand zone at M15