Buy GBP/USD @ cmp of 1.1763 target 1.20-1.21 stops below 1.16
Reason: The UK-US 02year bond yield spread has jumped by 100 basis points since Aug. 8, while GBPUSD has continued to fall. In my opinion, Pound will catch up with the recent bounce in the yield spread. Besides, there is chatter than UK will have to raise interest rates above 4% to combat inflation.
Besides, GBP/USD's weekly chart shows bullish divergence of RSI.
Reason: The UK-US 02year bond yield spread has jumped by 100 basis points since Aug. 8, while GBPUSD has continued to fall. In my opinion, Pound will catch up with the recent bounce in the yield spread. Besides, there is chatter than UK will have to raise interest rates above 4% to combat inflation.
Besides, GBP/USD's weekly chart shows bullish divergence of RSI.