So just seeing the news now that the UK is officially in a double dip recession after its second quarter of economic contraction. Seeing as the GBP/USD has gained in this last week, how do you see the market reacting in relation to this news? Will the uptrend continue based on confidence or will we see a sudden shift in direction?
It seems that the economic news earlier caused a reversal in the trend. Another factor I think is that GBP/USD has not broken that 1.6165 Resistance level in 7 months.
I feel the downtrend will continue. However the psychological support level at 1.6000 should hold out if tested, at least in the first case.
Keep an eye on the charts to see how price reacts in these next few hours.
The recent data suggests that the Economic scenario is not very good in the UK and it is headed for a recession which is why GBP is under selling pressure.
Yes that’s true. Here in Northern Ireland it is evident that the economy is shrinking, with the construction industry being a major factor. In some of the major cities not one crane can be seen over the skyline, which I see as a very worrying sign of our overall output.
I think that the US stock markets are setting the tone this days and even good new regarding you local
economy could not help the local markets if the US indices slide. Currently, it looks like we are about to see a
long bearish session in Wall Street and this will affect the pound, the English markets and the entire global
markets.
Will be watching this one closely. I tend to trade the EUR/GBP pair, curious if the bad news will nudge the Euro back up against the pound a little after all the beating its taken this week.
Wow that one went the opposite way to what I was expecting. Got to love those stops 