GBP/USD Price Analysis: Bulls make a break for it in high volatility, challenge bears at critical resistance
- GBP/USD volatility is creating trading opportunities for both the bulls and bears.
- US CPI data came in hot, driving money markets into a frenzy.
GBP/USD has made a break for it on the upside as the US dollar turns on a dime in high volatility in the forex markets driven by hot inflation data and re-pricing of global central banks.
The moves are creating trading opportunities and cable is considered one of the most volatile pairs in the space. Following the US Consumer Price Index data, the price fell to 1.3523 over the space of 3 fifteen minute candles only to then rally over the following ten 15-min candles to score a high of 1.3644.
The rally was parabolic so the price would be expected to see a reversion in the coming hours. We are still some way off from the market close and profit-taking could continue to ensure for the remainder of the day. At the time of writing, the price is now falling as follows:
More to come...