Forex Chart Of The Day: GBPUSD Trades Around 1.1200 After Government U-Turn

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?

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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.

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. 

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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