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GBP/USD is unmoved in early trading as the US celebrates June 19th -by Ecork

Pound Sterling Points

  • Key economic data from the United Kingdom and the United States later this week.
  • BoE amplifiers focus on inf today.
  • The short term uptrend may be on paper.

GBP/USD Basic Background

Last week’s rolling excursion to the FX markets is unlikely to extend even today, as the June holiday in the US should come with less market volatility. Through the Asian session, the price action continued British Pounds / US Dollars Muted with no important news/announcements from the weekend.

Earlier this morning, UK Chancellor of the Exchequer Simon Clarke said they do not expect a recession which could lead to a marginal rise in the cable shortly after the statement.

Includes reminders for upcoming events this week inflation Wednesday’s UK data (see calendar below) along with testimony from President Jerome Powell. Both can affect the GBP/USD as well as the current central bank (Bank of England (BoE) and Fed) novels. Stronger inflation reading could push the Bank of England higher 50 bits per second in August which they left open for consideration (mentioned in the Bank of England last week modified resolution).

Later in the day, the Bank of England’s Mann and Haskell spoke discussing last week’s interest rate decision and the risks associated with it.

GBP/USD economic calendar

source: DailyFX Economic Calendar

Technical Analysis

British Pounds / US Dollars daily planner

GBP/USD daily chart

The graph was prepared by Warren VenkitasAnd the IG

Despite several major headwinds facing the pound against the dollar, the fact that sterling has held on to the top 1.2200 The FOMC post markets are showing unexpected confidence in the British Pound. I think in the short term, there is a lot of hinge in Wednesday’s CPI reading that could push cable to subsequent resistance targets if actual data exceeds expectations.

Key resistance levels:

  • 1.2400
  • 20 day EMA (lilac)

Main levels of support:

  • 1.2200
  • 1.2080
  • 1.1934 (low swing)

The sense of the reluctant IG client

IG customer morale Data (IGCS) shows that retailers are currently on long on me British Pounds / US Dollarswith 74% of traders who are currently holding long positions (as of this writing). At DailyFX, we usually take a conflicting view of crowd sentiment, however, due to recent changes in long and short positions, we arrive at a mixed short-term bias.

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