GBPUSD Technical Analysis: FTSE 100 Rises

GBPUSD Technical Analysis
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Bloomberg – On Wednesday, the UK stock market experienced a welcome recovery. The FTSE 100 index rose by 0.5%, marking a positive shift after two days of losses. This improvement was mainly due to a strong performance in the mining sector. Industrial metal mining companies saw an increase of nearly 2%, thanks to higher metal prices. Similarly, companies mining precious metals enjoyed over a 1% gain, buoyed by rising gold prices.

In another positive development, Ocado Group’s shares jumped by about 3% after J.P. Morgan upgraded their rating to “neutral” from “underweight.” On the other hand, British American Tobacco faced a tough day, with their shares dropping more than 6%. This decline followed their announcement of a substantial impairment charge of 25 billion pounds ($31.50 billion) due to the reassessment of the value of some of their U.S. cigarette brands.

GBPUSD Technical Analysis

In this analysis, we’re focusing on the GBPUSD currency pair, which is currently showing some stability within the Ichimoku cloud. This indicates a steady position just above the 23.6% mark on the Fibonacci scale. For a continued upward trend, it’s crucial for this pair to rise above the current bearish flag pattern.

GBPUSD Technical Analysis

GBPUSD Technical Analysis – 4H Chart

However, if this upward movement doesn’t happen, we might see a downturn. This could result in the pair sliding down to the 38.2% Fibonacci level, marking a significant decline.