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GBPUSD Market Update

3/15/2023 12:09 PM

The GBP/USD pair is trying to regain lost positions, trading around 1.2163.

Further growth of quotations was restrained by yesterday's statistics on the labor market, which was perceived by the market ambiguously: the unemployment rate in the UK in January remained at the December levels of 3.7%, which is better than the 3.8% expected by analysts, however, the number of applications for unemployment benefits decreased by 11.2K instead of the projected 12.4K, and the average wage level, excluding bonuses, from 6.7% to 6.5%, while wages, taking into account bonuses, decreased to 5.7% from 6.0%, disappointing investors.

The US dollar is trading within a downtrend around 103.100 in the USD Index. Over the past six months, there has rarely been a situation where analysts could accurately predict consumer prices. But this has happened now, and the rate increased by 0.4% in February, which led to a slowdown in the annual rate of growth to 6.0% from 6.4% earlier. The forecast for core inflation was correct as well, which now stands at 5.5%, down from 5.6%. Likely, the entire scenario has already been calculated and included in the exchange price, which means that the situation with the March meeting of the US Federal Reserve may be quite expected.

On the daily chart, the trading instrument is moving within the local downward corridor with the boundaries of 1.2350–1.1800, preparing to exit the range upwards.

Technical indicators reinforce the buy signal: the range of fluctuations of the EMA on the Alligator indicator expands upwards, and the AO histogram forms rising bars above the transition level.

Resistance levels: 1.2305, 1.2650. | Support levels: 1.2010, 1.1800.

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