Forex news and GBP/USD up 0.49% for the day

Fresh Key Market News:

• BOC raises interest rates by 50 basis points to 1.50% as expected
• The US Central Bank’s consumer confidence index fell from 108.6 to 106.4.
• Britain’s BRC price index rises 2.7% to 2.8%
• Japan’s first-quarter capital spending rose 3.0% vs. 3.7% forecast, 4.3% earlier
• Australia’s AIG manufacturing index declined from 58.5 to 52.4.
• Australia’s economy grew 0.8% against a 0.6% forecast in Q1 2022
• China’s Caixin manufacturing PMI rose from 46.0 to 48.1, missing expectations of 49.1.
• China’s stock indexes are closing higher, thanks to stimulus measures taken.
• ISM’s U.S. manufacturing PMI improved from 55.4 to 56.1 in May.
• Retail sales in Germany fell 5.4% on the back of a 0.5% forecast.
• UK Nationwide HPI up 0.9% from 0.6% forecast, 0.4% earlier
• The inflation rate in Switzerland in May reached 2.9% for the year, ahead of the forecast of 2.6% and reaching its highest level since September 2008.

The GBP/USD is showing some upside, breaking through at 1.2475 to reach 1.2553 at the time of writing.

GBP/USD 1d Graph

By Tradingview

The 1.2575 level is about 50% of the Fibonacci recovery of the last big downturn. It also coincides with the level of broken support for the channel yesterday, which is key.

Increasing economic and political tension may contribute to the anti-virus wave, which will return GBP/USD below 1.2500.

In the short term, a return of Cable to the ascending channel is possible, while celebrations of the anniversary of Queen Elizabeth are taking place, contributing more GBP buying.

Also, many traders agree that the right entry point for the trader is at the boundary of the current trend. Knowing the location of the trend boundary at a time, the trader determines the best price for trading in this trend and on its change.

GBP/USD – 1.2630 downtrend boundary for July 2