RLinda ! GBPUSD-> Bullish on the market. For how long?

27 Okt 2022

Calculated by ICE index, which shows the dynamics of the U.S. dollar against major currencies is declining by about 0.1%. Over the past two sessions, the indicator has fallen by 2% and dropped to its lowest in a month

The main reason for the dollar's decline this week was expectations that the U.S. Federal Reserve might slow its key rate hike as inflation wanes and the U.S. economy weakens

The British pound is recovering. After a long struggle in the area of 1.1000-1.14000, the price is determined with the forces and the bulls finally show themselves after a consolidation above the downtrend (red) line.
The price breaks through the important resistance zone 1.14500 from below upwards, which is some kind of exact risk and at the moment the price is forming an upward impulse.
With bitcoin's strength strengthening above the level, there will be excellent potential for good medium-term growth

On the main chart, the price forms a breakout of the level from the first technical pullback of 1.15843, but is in no hurry to grow further.
Assumptions:

• 1) In an unstable fundamental situation the price can form a pullback to the zone of 1.14900 and from which the growth to the resistance levels will probably continue
  
• 2) It is also worth waiting for the price rollback to the support area base (the bottom line of the ascending channel)
  
• 3) The local trend is ascending, and the price shows a bullish mood. We are looking for strong support zones, waiting for the price to test these zones and confirmation of the reaction of the bulls for further growth, only then it is acceptable with minimal risks to open long positions
  

Sincerely R. Linda!