GBP/USD’s recovery could meet resistance near 1.2382 Scope for technical supports at 1.2142, 1.1991 & 1.1990 Fed’s golden QT opportunity potentially a risk multi-week But UK economic data could support short-term rebound Image © Adobe Images The Pound to Dollar exchange rate entered the new week on the front foot and could have scope to rise further in the days ahead but the recent loosening of ‘financial conditions’ risks inviting a Federal Reserve (Fed) quantitative tightening (QT) response that would be a potential risk for Sterling multi-week. Sterling rose against many of its major currency counterparts in Asia trading on Monday as last week’s Dollar selling continued but could soon face obstruction from technical resistances around 1.2302 and 1.2382 on the charts if its rebound continues over the coming days. Dollars have been sold widely in recent trade including after official figures revealed a third successive decline in U.S. inflation for the month of December last Thursday while offering the Fed a glimpse of a possible victory in its battle to return inflation to the 2% target. "Over time, we think the narrative may shift back in a more neutral or Dollar supportive direction—as US economic resilience becomes more […]
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