The Federal Reserve's decision to hit the US dollar hard, and the pound seized the opportunity to rebound

pound/The US dollar closed higher on Wednesday than1.2650The decline of the US dollar boosted the pound. The UK announced on Wednesday5monthCPIThe data is not unexpected.CPIAnnual rate recorded2.0%, in line with market expectations and the latest expectations of the Bank of England. coreCPIAnnual rate recorded1.7%As expected. In addition, the vote by Conservative MPs in the UK has ended, and Johnson has once again won143Tickets, only left4The candidate. Despite some bearish retracements in the pound amid renewed trade optimism, the exchange rate did not respond significantly.

britain/dollar4The hourly chart shows that the exchange rate continues to rise and breaks through the flat trend20SMABut currently hovering around100SMANearby, technical indicators have risen and entered this area. If we continue to break through this level in the future, it will trigger a series of short covering, which will help the exchange rate return1.2700Gateway and1.2725/30Area.

On Thursday, the Bank of England will announce its interest rate decision or imply a rate hike, but the pace will be slow. The uncertainty and political turmoil surrounding Brexit will keep the Bank of England at a standstill for now, but the global stance of central banks has shifted towards dovish. The upcoming news related to Brexit may continue to bring some fluctuations to the pound exchange rate and bring some effective trading opportunities. Upper resistance level1.2730, lower support position1.2610。