Solid News

GBPUSD Waiting for the Speeches of the US Federal Reserve

11/21/2022 12:26 PM

The GBP/USD pair is showing neutrality, trading around 1.1836: the upward trend, observed after Friday's statistics, reversed downwards.

UK retail sales rose 0.6% in October after falling 1.5% in September and falling 6.1% YoY from –6.8% in September, but investors understand that the outlook is not so positive in the long term. Yesterday, the Office of Budget Responsibility (OBR) published reports which predicted a slowdown in the national economy by 2.0% and an increase in unemployment by 505.0K in the next two years. Also, household income is expected to decline by 7.0% due to rising inflation and tax increases, reaching up to 37.1% of gross domestic product (GDP).

The US dollar is correcting upwards, reaching 107.300 in the USD Index, which may be a technical correction due to relative calm in the information field. The pressure on the currency may continue tomorrow, as several US Federal Reserve officials will comment on the ongoing monetary policy. James Bullard, head of the Federal Reserve Bank of St. Louis, late last week, said that the rate could be raised to 5–7% before the regulator takes a break to assess the impact of the measures taken on inflation.

On the daily chart, the trading instrument is holding within the local ascending channel, having reached the resistance line near 1.2000 yesterday.

Technical indicators keep a buy signal and are preparing for a local correction: the range of EMA fluctuations on the Alligator indicator began to narrow slightly, and the AO oscillator's histogram is forming upward bars in the buying zone.

Resistance levels: 1.1956, 1.2240. | Support levels: 1.1753, 1.1360.

Solid ECN Securities and it affiliates don't accept applications from Indonesia, Egypt, Australia, Bonaire, Curaçao, East Timor, Liberia, Saipan, Russia, Sint Eustatius, Tahiti, Turkey, Guinea-Bissau, South Sudan and other restricted countries.
Copyright All Right Reserved 2023