Is The Pound Sterling Overvalued?
The pound sterling corrected some of its recent gains against the U.S. dollar after the GBP/USD failed to break above 1.2660. As we stated in previous analysis, we expect an even stronger correction that may lead to a slide back towards 1.24 in the near-term. Some investors are even most bearish on the pound, saying the market has to go much further in pricing out Bank of England rate hikes. Some market participants think that the pound is overvalued in the long-term pointing on concerns over U.K. financial imbalances.
However, from a technical point of view the GBP/USD remains in a downtrend with a next resistance seen at 1.2680. Sterling bulls may prefer to wait until 1.27 is cleared to jump in on buy attempts toward 1.30.
Daily Forex, DAX And Crypto Signals:
If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.
GBP/USD
Long @ 1.2620
Short @ 1.2560
We wish you good trades!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2022 MaiMarFX.
Follow us on social media:
