Solid News

Multidirectional Trading Dynamics in the GBPUSD

12/21/2022 11:19 AM

During the Asian session, the GBP/USD pair trades in different directions, holding close to 1.2165.

Market activity remains low as investors prepare for the Christmas holidays, not expecting strong drivers for the quotes movement this week. Meanwhile, the US dollar is under pressure from poor macroeconomic national statistics: data released yesterday reflected a drop in the dynamics of new home construction in November by 0.5%. The currency weakened after the US Fed started a gradual easing of the "hawkish" rhetoric: according to forecasts, the regulator will raise interest rates by 25.0 basis points in February and March, after which the cycle of monetary tightening may end.

The Bank of England is acting similarly, but at the latest meeting, the regulator confirmed that the country's economy went into recession in the fourth quarter, but growth is expected to recover towards the end of 2023 gradually. On Thursday, the UK will release renewed data on the dynamics of Q3 gross domestic product (GDP): the previous statistics showed a decline of 0.2% QoQ and an increase of 2.4% YoY. Meanwhile, Prime Minister Rishi Sunak said that the country would abandon the plans of his predecessor, Liz Truss, to buy energy resources from abroad, and the working group she created to conclude deals with foreign suppliers will be disbanded because, according to the politician, the government does not intend to interfere in the work world gas markets. Formerly the operator of the unified British power system National Grid Plc. published an emergency plan, including a mechanism for systematic three-hour blackouts in the event of a cold winter and the cessation of the supply of Russian gas.

On the daily chart, Bollinger bands are moving flat: the price range is practically unchanged, remaining quite spacious for the current level of activity in the market. The MACD indicator is falling, keeping a poor sell signal (the histogram is below the signal line). Stochastic, having reversed at zero, maintains an active upward direction, signaling in favor of the development of corrective growth in the ultra-short term.

Resistance levels: 1.2240, 1.2311, 1.2400, 1.2500. | Support levels: 1.2150, 1.2084, 1.2027, 1.1939.

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

Disclaimer 1: Solid ECN Securities LLC and it affiliates does not accept clients from Turkey, United States, and Europe.
Disclaimer 2: 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.
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.
Copyright All Right Reserved 2023