Market News

The Pound Trajectory Ahead of Pivotal UK & US Reports

Pound UK US Reports

Charting GBP Path: Navigate market shifts with insights on Pound trajectory ahead of pivotal UK & US reports

All eyes are on upcoming economic data to shape monetary policy forecasts, with scheduled speeches from Fed and BoE speakers. GBP/USD holds above 1.22 but remains within a bearish flag pattern.

The British Pound started the week slightly higher against the US dollar following last week’s significant depreciation. The hawkish stance of Fed Chair Jerome Powell supported the greenback, and market focus is now on crucial economic data from both the UK and the US. Early today, Rightmove reported a rapid decline in UK housing prices, attributing it to tight credit conditions resulting from the Bank of England’s (BoE) high interest rates.

The Pound Trajectory Ahead of Pivotal UK & US Reports

Today’s economic schedule is relatively quiet, focusing on speeches from Fed and BoE representatives before a busy week of economic events. UK jobs data, though important, might need some key elements affecting its accuracy and impact on both the Pound and BoE monetary policy; this makes the upcoming UK inflation print more influential. The week’s focal point is the US Consumer Price Index (CPI), which could reinforce Fed Chair Powell’s remarks and strengthen the USD.

Technical Analysis

Daily price action is confined between the 50-day moving average and the psychological handle of 1.2200 while maintaining a bearish flag pattern.

The Relative Strength Index (RSI) indicates hesitancy, hovering around the midpoint level.

Upcoming data releases will influence short-term directional bias.

Key Resistance Levels

200-day MA 

Flag resistance at 1.2308

50-day MA 

Key Support Levels

1.2200

1.2100/Flag support

1.2000

1.1804

Mixed IG Client Sentiment (GBP/USD)

IG Client Sentiment Data (IGCS) reveals that retail traders are currently net LONG on GBP/USD, with 69% of traders holding long positions (as of this writing).

In summary, combining technical analysis and client sentiment data suggests that the GBP/USD pair navigates a pivotal juncture. Traders are closely monitoring key levels and awaiting upcoming economic data releases, especially given the potential impact on monetary policy decisions by the Federal Reserve and the Bank of England.

Stay Updated with the Latest Market News. Visit our YouTube Channel for the Latest Forex Analysis.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Related Articles

Asian Stock Plunge as Nikkei Leads with 3% Drop

Asian markets fell sharply, led by Japan's Nikkei, which dropped 3.14%. U.S....

Asia-Pacific Markets Dip on Tech Earnings and Economic Data

Asian markets fell as U.S. tech earnings disappointed. The Nikkei dropped 1.27%,...

Asian Stock Diverge as Wall Street Sees Strong Rebound

Asia-Pacific markets were mixed as Wall Street rebounded. Taiwan's Taiex surged 2.4%,...

Dollar Steady; Gold and Oil Prices Face Challenges: Market Focus

Quiet start to the week with no major news. DXY steadying around...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Asian Stock Plummet as Nikkei Leads with 3% Drop
Market News

Asian Stock Plunge as Nikkei Leads with 3% Drop

Asian markets fell sharply, led by Japan's Nikkei, which dropped 3.14%. U.S. tech stocks also suffered significant declines.

Asia-Pacific Markets Dip on Tech Earnings and Economic Data
Market News

Asia-Pacific Markets Dip on Tech Earnings and Economic Data

Asian markets fell as U.S. tech earnings disappointed. The Nikkei dropped 1.27%, Hang Seng down 0.83%, and EV stocks fell.

Copyright © 2023 Forex Prop News. All Rights Reserved.