Posted 1 year ago
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GBPUSD has moved up further and is currently trading at 1.31616. I feel that it may encounter a resistance at 1.32 (or 1.32142). If it crosses that resistance, then it could go all the way up to 1.335.
However, I am not convinced with the argument that higher inflation data is good justification for the GBP to climb. Higher inflation would mean that people have less purchasing power. So, demand would go down, leading to lower economic activity, i.e. slowing of economic growth or outright shrinking of the economy.