Making the second biggest dip in the past year, GBP/USD is just about ready for some undeniable volatility With both the FOMC and the BOE meetiing this week.GBP/USD is currently trading within the triangle trend and slightly below the 50- and 200-day Moving Averages.Support is at today’s lows near the bottom, upward sloping trendline of the triangle, near 1.3642. Please see the following link to learn more about what else our Analyst Joe Perry has to say about this pair:
I also see more upside in GBPUSD despite dollar strength since BoE rate hike looks imminent in December.
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The impact this made on European markets is just as significant. We strongly believed it was going to hike during the last BoE meeting however disappointingly that didn’t happen.
While the chaotic air still spread thick during this BOE meeting, they did highlight data showing reasons leading against the increase in interest rates last month such as uncertainties over the labour market and later on leading to a decease in unemployment rates. Hopefully, this issue is taken care of soon as inflation reports came out to be much worse than expected at 4.2% rather than the 3.9%. Definitely something to note when trading this pair.
Well if we consider macroeconomic developments positive for Pound exchange rate, inflation beating forecasts should fall into this category however recent surge of daily cases creates uncertainty over outlook of policy tightening.
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Recent inflation and employment data from the UK looks like it could bode well for Pound as it might force the BoE into a rate hike next month
GBP was the strongest performing major currency last week, and that could potentially continue. But you’re right, everything is likely highly dependent on how the new surge in cases and plays out and whether or not it leads to another lockdown
Yeah and also new strain apparently introduces a lot of uncertainty to macroeconomic projections judging by the markets’ reaction today.
In my opinion, this pair is the most profitable, because it\s considered to be one of the major currency pairs on the market. Of course, GBP doesn’t have a strong impact on USD, but I believe that if you will determine the levels of support and resistance correctly, and you will use some technical indocators, for example, as you have mentioned, moving averages 50 or 200, then perhaps you will be able to foresee the further direction of the price. I always use MAs, sometimes EMA or SMA. However, I also support these indicators with RSI, because the levels of overbought and oversold also matter a lot.