GBPUSD: Is 1.2200 The Best Forex Level To Buy From ?

Tues 28th March 2023 : Daily Forex Price Action

Today we’re looking at Trading Setups in:

• GBPUSD
• EURCAD (Covered in Video)

GBP tops the day traders tables as the strongest currency after comments from the BoE Govenor.

BoE Governor Bailey talked about the need to bring inflation down, using interest rates as the tool to do so.

Inflation in the UK as of Feb was 10.4%, this is well above the BoE 2% target.

This could indicate more rate hikes to come in the UK.

If that is the case GBPUSD could trade higher towards the range highs at 1.2400.

Currently price is trading between a minor range between the highs of 1.2325 and lows of 1.2200.

If price retraces back to the 1.2200 level we could look for buying opportunities with targets being the weekly range highs.

Alternatively, we can look for price to trade above and retest the current highs circa 1.2400

Technical Observations

• The GBP is S1 and USD is W1 on the day traders table.
• Price is trading within a long term range between the highs of 1.2400 and lows of 1.1850.
• Currently price is rejecting previous highs which could see the support of 1.2200 tested. 
• If price tests the 1.2200 and forms bullish price action, we could see buyers re-enter the market.