Forex Fundamental Analysis – The gloomy outlook


GBPUSD trading plan:

The Bank of England unleashed its biggest interest-rate hike in 27 years as it warned the UK is heading for more than a year of recession under the weight of soaring inflation. “The committee will be particularly alert to indications of more persistent inflationary pressures, and will, if necessary, act forcefully in response,” Governor Andrew Bailey told reporters in London. “All options are on the table for our September meeting, and beyond that.” Set against the gloomy outlook, the half-point hike, unprecedented since the BOE gained independence in 1997, is a sign officials led by Bailey are calling time on the era of cheap money and scrambling to keep pace with a wave of global tightening from its international peers.

Investment idea: buy 1.2115 and take profit 1.2190.

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