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GBPUSD Market Update

9/2/2022 2:17 PM

The GBP/USD pair is correcting around 1.1550.

The pound is under strong pressure due to the strong growth of the US dollar and worsening problems in the UK economy, where the August growth of the real estate market by 0.8% could not stop the general trend of the annual slowdown, and the figure was 10.0% instead of 11.0% a month earlier. On Wednesday, Reuters suggested that house price growth will decline to 7.0% by the end of the year and will be 1.0% in 2023. Another study published by The Telegraph says that the share of household spending on fuel and electricity at the beginning of the year was 4.5%, and by the beginning of 2023, it could rise to 13.4%, which has never happened in recent history of the country.

The US dollar breaks new records, reaching 109.500 in the USD Index against the backdrop of a positive report on the labor market: according to yesterday's data, Initial Jobless Claims amounted to 232.0K, which is lower than 237.0K a week earlier and significantly less than analysts' forecasts, which assumed the growth rate to 248.0K. Another positive moment was Manufacturing PMI, which in August reached 51.5 points, having risen from 51.3 points a month earlier, thereby breaking the four-month downward trend.

The trading instrument is moving within the global downward channel, falling towards the support line.

Technical indicators keep a stable sell signal: the EMA fluctuation range on the Alligator indicator expands in the direction of decline, and the AO oscillator histogram forms downward bars in the sell zone.

Resistance levels: 1.1630, 1.1930. | Support levels: 1.1500, 1.1252.

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