Solid News

GBPUSD Market Update

12/22/2022 12:19 PM

Due to the US dollar stagnation, the GBP/USD pair is correcting at 1.2126.

The pound is falling against the backdrop of the largest mass protests of civil servants in the last 30 years, caused by dissatisfaction with working conditions and wages: yesterday, ambulance workers stopped working in almost all medical districts of the British National Health System (NHS). The situation is complicated by high inflation, as a result of which bills for electricity and heating have increased several times. Also, the public sector's net cash requirement rose to 20.336B pounds in November from 9.997B pounds last month, marking the fourth straight month of growth, while borrowing rose to 21.2B pounds from 13.37B pounds previously. According to a report from the UK's Office for Budget Responsibility (OBR), the total has already exceeded 105.0B pounds since January and could reach 177.0B pounds or 7.0% of gross domestic product (GDP) by the end of the fiscal year.

The decline in the GBP/USD pair is constrained by the negative dynamics of the US dollar, which is currently trading around 103.500 in the USD Index against the backdrop of a disappointing report on the real estate market: in November, sales on the secondary housing market fell by 7.7% to 4.09M against 4.43M a month earlier, marking the tenth consecutive month of decline.

On the daily chart, the trading instrument is moving within the local ascending channel, falling toward the support line.

Technical indicators keep a buy signal but point to a possible decline: the EMA fluctuation range on the Alligator indicator began to narrow rapidly, and the AO oscillator histogram forms downward bars, falling in the buy zone.

Resistance levels: 1.2230, 1.2451. | Support levels: 1.2050, 1.1680.

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