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The GBPUSD price is trading around 1.1200 after the UK Government reversed the decision to cut taxes. Will the price of cable continue to climb?

 

Watch the video to learn more…

GBPUSD Analysis

The price of cable continued its gains from last week after the UK Government announced the decision to reverse the recent tax cut announcement. Recently the UK Government talked of cutting taxes which would have increased the amount of debt the UK would need to repay. This caused the GBP to crash as investors lacked confidence in the UK paying back this debt. Recently, the UK Finance Minister Kwarteng reversed the decision to cut taxes keeping the cable price around 1.1200.

GBPUSD

The GBPUSD weekly price closed as a strong bullish rejection candle. This is reflected by the 4hr time frame by the pair making higher highs and higher lows. Currently the price is stalling around the minor resistance at 1.1200. If the price continues higher we could see 1.1400 monthly resistance retested. If the price trades back through the 1.1000 lows we could see sellers re-enter the market. The price is more likely to push higher as the USD Index heads towards the weekly highs. 

Did you see our Week Ahead Analysis? You can see it here.

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