Solid News

GBPUSD Market Update

1/16/2023 1:41 PM

The growth of the GBP/USD pair stopped at the level of 1.2250 after the publication of mixed data on the UK's gross domestic product (GDP) last Friday.

Thus, in monthly terms in December, the indicator increased by 0.1%, which turned out to be better than the forecast of -0.3%, but worse than the previous value of 0.5%, and in annual terms it amounted to only 0.2%, which is lower than expected 0.3% and previous 1.5%. Nevertheless, experts believe that the situation in the country's economy remains negative, and a recession is inevitable, although it may come later than expected.

As you can see from the published statistics, in Q4 2022, the UK GDP corrected sharply due to higher electricity prices and high inflation, as a result of which many industries were forced to stop operations. This fact is confirmed by the statistics on production volumes in the manufacturing industry in monthly terms: in November, the indicator fell by 0.5%, which was lower than the forecast of -0.2% and the previous value of 0.7%.

Thus, the UK economy is experiencing difficulties that are unlikely to be resolved in a short time, and investors, fearing a recession in 2023, are in no hurry to open long positions in the British pound, preferring to wait for the publication of new economic data.

The long-term trend, however, remains upward. Last week, the GBP/USD pair approached the level of 1.2250, and today tested it. The mark cannot be broken out yet, which may lead to a correction in the mid-term, in the event of which the target for sales will be the low of January this year in the area of 1.1840.

The mid-term trend is upward. At the beginning of January 2023, market participants made an unsuccessful attempt to break down the key support 1.1998–1.1953, a local low was formed in the area of 1.1840, after which the price returned to the key trend support. The trend boundary is shifting to the 1.1840 area, while the price is trading above this level, it is profitable to consider long positions with a target in the 1.2471–1.2435 zone.

Resistance levels: 1.2250, 1.2450, 1.2650. | Support levels: 1.1840, 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