- Recent inflation trends mean the Dollar is weakening and the Pound is strengthening
- The world bank is calling for a recession this year
- Bulls are in full control as they target the point of control level at $1.3
Fundamentals Driving New Price Discovery
With the recent inflation showing a reversal in trend, we are seeing the Dollar take a hit because of it. Recent CPI reports out of Great Britain indicate inflation is beginning to turn in the desired direction in most of the world. We should not get ahead of ourselves for the time being; the world bank is expecting a recessoin this year, which, depending on how you measure it, would mean another leg down for stock indices.
6B Futures Technical Analysis
The long-term view on 6B is bullish, with price rallying 19% since September of last year. The sterling has just rallied back into a wide range between $1.2 and $1.43. The momentum is strong, and if the fundamentals mentioned above stay the course, we likely see the pound back up at the high end of the range by year-end. This is a long shot, though, and as we have since in recent years, things can change rapidly.
The point of control for the volume profile indicator is currently at $1.31, which is 6% away from current prices ($1.23). This is the first major target for bulls before the $1.4 level even becomes a talking point.
The recent trend of inflation has caused a decline in the value of the dollar. However, inflation is starting to turn in the desired direction in most parts of the world, as reported by Great Britain’s CPI. The world bank is expecting a recession this year, which may have a negative impact on stock indices. From a technical analysis perspective, the 6B futures have a bullish long-term view, with prices rising 19% since September of last year. The momentum is strong, and the Pound is currently within a wide range between $1.2 and $1.43. However, the article suggests that it is a long shot for the Pound to reach the high end of the range by the end of the year and that the market can change rapidly. The point of control for the volume profile indicator is currently at $1.31, which is 6% away from current prices ($1.23) and is the first major target for bulls before the $1.4 level can be considered.
