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Latest Sterling – GBP/USD rallied due to USD weakness -by Ecork

GBP/USD – rates, charts and analysis

  • It looks like the Bank of England (BoE) is ready to raise interest rates next week.
  • The daily chart of the GBP/USD pair looks positive.

Sterling is heading into the weekend in a somewhat upbeat mood and just printed a one-month high around 1.2245. While the British Pound picked a small bid over the past two weeks, this week’s move was driven by the weakness of the US Dollar. The dollar, a one-way trade since June last year, is losing its luster after the Federal Open Market Committee meeting after Fed Chair Powell suggested that the Fed might pause raising interest rates, when appropriate, the first time this was published. The opinion. The US dollar has weakened significantly across the board over the past two days.

Has the US dollar (DXY) risen?

For all market-moving economic data and events, please refer to DailyFX . calendar

Next week the BoE will raise the bank rate again with the market now tilting 50 basis points higher. The Bank of England, along with other central banks, is playing catch-up with inflation which is expected to hit double digits in the UK in the third quarter. The latest monthly GDP data surprised the upside, with +0.5% in May compared to -0.2% in April, while the UK unemployment rate fell to a 50-year low of 3.7% between January and March, according to data from the Office of National Statistics (ONS). This strong backdrop should allow the BoE room to raise interest rates by half a percentage point next Thursday, which in turn will boost the pound even more.

The daily chart of the GBP/USD pair remains positive, with a series of higher lows seen since mid-July. A series of higher rallies have been breached several times but still indicate a bullish tone for the market. The pair also broke above the 20 and 50 day simple moving averages for the first time since mid-February, and this adds to the positive background. If the GBP/USD can stay above 1.2150, we may see more gains ahead. Traders should also be aware of month-end repair flows today which could cause sharp and short-term moves.

GBP/USD daily rate chart – July 29, 2022

Latest Sterling - GBP/USD rallied due to USD weakness

Retailer data show 65.24% of traders are net long with the ratio of long to short traders at 1.88 to 1. The number of long traders is 3.12% higher than yesterday and down 11.30% since last week, while the number of short traders is 2.41% higher than yesterday and 21.96% higher than last week.

We usually take a conflicting view with crowd sentiment, and the fact that traders are holding suggests that GBP/USD prices may continue to fall. Positioning is longer net than yesterday but less net buy than last week. The combination of current feelings and recent changes gives us More conflicting bias in GBP/USD trading.

what is your opinion of The British pound – Ascending or descending? You can let us know via the form at the end of this piece or you can contact the author via Twitter hahahahahaha.

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