GBP/USD fell to its lowest level since November 2020 | newsletter

The GBP/USD currency pair has fallen sharply in recent weeks, in part due to the growing discrepancy between data from the Federal Reserve and the Bank of England. The Bank of England softened its tone during the March meeting, which could indicate that UK policy makers are more concerned about the growth outlook than about rising inflation. Meanwhile, the Fed is expected to be more aggressive this year, with many investors anticipating a 50 basis point hike in May, supporting the US dollar.

GBPUSD fell below the $1.30 support level, the lowest since November 2020. If current sentiment prevails, the downside may accelerate towards the next support at 1.2850, the 50.0% Fibonacci retracement level of the upside wave that started in March 2020 On the other hand, if the buyers regain control, more bullish momentum may start towards 1.32. Source: xStation 5

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The author is currently not investing in the securities or assets discussed.

The authors of the publications compile this information at their own risk. The analyzes and opinions are not written with reference to the specific investment goals and needs of any particular person. XTB publications commenting on specific positions in the financial markets and general statements of XTB employees regarding financial markets do not constitute and cannot be construed as advice to clients of XTB. XTB will not be liable for any loss arising directly or indirectly from any decision to act in connection with the content of the Posts.

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