Solid News

GBPUSD is Attempting Moderate Growth

12/27/2022 12:26 PM

Last week, the GBP/USD pair fell to 1.1990. The last factor of pressure on the pound was the data on the Gross Domestic Product (GDP) of Great Britain for the third quarter. Due to a decline in the industrial and construction sectors, as well as a reduction in investment in business, the British economy corrected by -0.3% instead of the expected -0.2%, showing the weakest results among the G7 countries. In turn, the US economy over the same period grew by 3.2% instead of 2.9%, which only increased pressure on quotes.

Today, the price is making an attempt to grow, which experts attribute to the decision of the Chinese authorities to lift the quarantine for arriving citizens of other countries from next week. These measures should help increase the flow of tourists to the country and further stimulate the recovery of the national and global economy.

In general, the movement potential of the GBP/USD pair this week seems to be limited due to the declining activity of investors on the eve of the New Year holidays.

At present, the price is in the area of 1.2100, but for a significant continuation of the growth, the quotes will have to consolidate above 1.2207 (the center line of Bollinger Bands, Murray [6/8]). In this case, the price will be able to rise to the levels of 1.2451 (Murray [7/8], Fibonacci retracement 50.0%) and 1.2700 (Murray [8/8]). The key point for the "bears" seems to be 1.1962 (Murray [5/8], the lower line of Bollinger Bands). Its breakdown will give the prospect of further decline to the levels of 1.1718 (Murray [4/8]) and 1.1540 (Fibonacci retracement 23.6%).

The upward reversal of Bollinger Bands and Stochastic signals the continuation of the uptrend; however, MACD is decreasing in the positive zone, not excluding the continuation of the correction.

Resistance levels: 1.2207, 1.2451, 1.2700. | Support levels: 1.1962, 1.1718, 1.1540.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2024