Breaking down the inflation basket, several items remain sticky, including alcohol and tobacco, clothing and footwear, housing and household services, of which homeowners’ housing costs and communication , which increased year-on-year. The drop in transport and fuels was probably the most prominent, with fuel prices falling 22.7% in 2023 (through June) and the transport segment falling 1.7% from ‘1.3% from May 2023.<\/p>\n
Basic knowledge of trade<\/p>\n
Macro basics<\/p>\n
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Recommended by Warren Venketas\n<\/p>\n
UK ECONOMIC CALENDAR (GMT +02:00)<\/p>\n
<\/a><\/p>\n Source: <\/span>DailyFX Economic Calendar<\/span><\/p>\n Looking at BoE interest rate expectations below, there is a bias towards aa 50 bps<\/span> rate hike in August approximately 58%<\/span> but the maximum rate has decreased since then 6.15%<\/span> even marginally above 6%<\/span>. With no more significant UK economic data ahead of the BoE rat announcement, the main GBP crossovers are likely to be driven by both US and Eurozone factors. Later today, EZ CPI is scheduled alongside US building permits and BoE Ramsden data.<\/p>\n BANK OF ENGLAND INTEREST RATE PROBABILITY<\/p>\n Source: Refinitiv<\/span><\/p>\n Trade Smarter – Sign up for the DailyFX newsletter<\/p>\n Receive timely and compelling market feedback from the DailyFX team<\/p>\n Subscribe to the newsletter<\/p>\n GBP\/USD DAILY CHART<\/p>\n Picture made by <\/span>Warren Venketas<\/span>GI<\/span><\/p>\n The price action on the daily wire chart above shows the immediate selling of the pound against the greenback now below the 1.3000<\/span> psychological handling, extending its movement out of the overbought zone on the relative strength index (RSI).<\/p>\n Key resistance levels:<\/span><\/p>\n Key levels of support:<\/span><\/p>\n 1.29001.2848 Trend line support 1.2680<\/p>\n IG Customer Sentiment (IGCS) data shows that retail traders are currently net SHORT <\/span>in GBP\/USD with 67%<\/span> of traders holding short positions (as of this writing). At DailyFX we normally take a contrary view to the crowd sentiment, but due to recent changes in long and short positioning, we come to a short-term bearish bias.<\/p>\n EUR\/GBP DAILY CHART<\/p>\n Picture made by <\/span>Warren Venketas<\/span>GI<\/span><\/p>\n EUR\/GBP recovered after the release and is now trading above the June high 0.8658<\/span>. Although the RSI is approaching the overbought region, there is still room for further upside possibly around the 0.8700 \u2013 0.8750<\/span> resistance zone.<\/p>\n Key resistance levels:<\/span><\/p>\n Key levels of support:<\/span><\/p>\n IG Customer Sentiment (IGCS) data shows that retail traders are currently net LONG <\/span>in GBP\/USD with 62%<\/span> of traders holding long positions (as of this writing). At DailyFX we normally take a contrary view to crowd sentiment, but due to recent changes in long and short positioning, we come to a short-term bullish bias.<\/p>\n Contact and follow Warren on Twitter:<\/span>@WVenketas<\/a><\/p>\n element within element. Surely this is not what you wanted to do! Instead, you load your application’s JavaScript package inside the element. ![\"image2.png\"](\"https:\/\/a.c-dn.net\/b\/1NGfxX\/image1.png\" "\\"\\"")
<\/a><\/p>\nTECHNICAL ANALYSIS<\/h2>\n
<\/a><\/p>\nIG CLIENT SENTIMENT BASSIST (GBP\/USD)<\/h2>\n
<\/a><\/p>\nBULLISH IG CLIENT SENTIMENT (EUR\/GBP)<\/h2>\n