Solid News

The Pound is Developing Flat Dynamics

11/23/2022 11:27 AM

The British pound is trading with mixed dynamics, holding close to 1.1875. The day before, the GBP/USD pair showed a moderate corrective growth, having won back Monday's losses; however, the activity in the market is still quite low. Investors are in no hurry to open new positions in anticipation of the publication of the minutes of the meeting of the US Federal Reserve. In addition, US stock exchanges will be closed tomorrow for Thanksgiving.

The pressure on the dollar is exerted by expectations that the US Federal Reserve will go for some easing of its "hawkish" monetary policy. Traders are counting on the continuation of the interest rate hike cycle, but its pace is likely to be reduced. In particular, in December the rate is expected to be corrected by only 50 basis points.

Today, investors are focused on macroeconomic statistics from the US on the dynamics of Durable Goods Orders for October. Current forecasts suggest that the figure will rise by 0.4%, repeating the dynamics of the previous month, and Excluding the Defense sector, order volumes may decrease by 0.1% after rising by 1.5% in September. The UK is due to publish business activity statistics during the day: the S&P Global/CIPS Composite PMI is expected to fall from 48.2 points to 47.5 points in November, and the Services PMI may fall from 48.8 points to 48.0 points.

In the meantime, the Organization for Economic Co-operation and Development (OECD) believes that in 2023 the UK will take second place after Russia in terms of the slowdown in macroeconomic growth among developed countries against the background of the energy crisis, which has become a driver of unprecedented inflation. According to experts' forecasts, the national economy will grow by 4.4% this year, but shrink by 0.4% next year, while the global economy, in turn, will add 3.1%, but will adjust to 2.7% in 2024. Downside risks remain, the report notes, as growth momentum has been lost and financial conditions have deteriorated significantly as global central banks have tightened monetary stimulus in recent months.

Bollinger Bands on the daily chart show a steady increase. The price range is narrowing, reflecting appearance of multi-directional dynamics in the short term. MACD is slightly declining keeping a weak sell signal (located below the signal line). Stochastic reversed horizontally approximately at the center of its area, fixing an approximate balance of power in the ultra-short term.

Resistance levels: 1.1933, 1.2027, 1.2133, 1.2236. | Support levels: 1.1853, 1.1800, 1.1700, 1.1600.

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