Home Forex Markets GBP/USD: Focus on UK politics and US data for a breakout direction

GBP/USD: Focus on UK politics and US data for a breakout direction

by WOOWinvest
0 comment
GBP/USD: Focus on UK politics and US data for a breakout direction


Summary: UK politics, Fed rate decision, US GDP and PCE data will be the focus of GBP traders.

From tonight, Liz Truss and Rishi Sunak, the two candidates for the next UK prime minister, will take part in a series of televised debates that will largely determine who becomes Downing Street The new owner of number 10. Current opinion polls show Foreign Secretary Truss ahead of the former Chancellor of the Exchequer.

While UK politics is likely to grab the headlines this week and affect GBP, a series of heavyweight US data and events this week could be the driving force behind GBP/USD. The most prominent event was the FOMC meeting in the early hours of Thursday, where the Fed is expected to raise interest rates by 75 basis points. The latest market pricing showed a 76.3% chance of a 75 basis point hike and a 23.7% chance of a 100 basis point hike. Additionally, preliminary U.S. second-quarter GDP (growth is likely to be negative) due in the U.S. session on Thursday and core PCE inflation on Friday will give traders a better idea of ​​the state of the U.S. economy.

GBP/USD daily chart

GBP/USD started the new week with rather subdued trading on either side of 1.2000. A breakout of 1.2064 would see the pair trade at its best level in nearly three weeks; on the other hand, there is little support to stop the pair apart from the 20-day simple moving average (currently at 1.1968) The pair fell below 1.1900. Right now, the pair looks indecisive, maybe other markets have better trading opportunities.

GBP/USD IG Client Sentiment

Nearly 75.75% of clients are net long, and the ratio of net longs to net shorts is 3.12:1. Net longs rose 1.39% from yesterday and fell 7.87% from last week. The number of net short positions decreased by 3.52% from yesterday and increased by 2.27% from last week. The IG sentiment index is often used as a contrarian indicator, with most retail investors being net long suggesting that GBP/USD may fall. However, net long positions increased from yesterday but decreased from last week. Combined with the current retail sentiment and the latest changes in positions, the outlook for GBP/USD is even more unclear.

(Nick Cawley)

The content on this page is for general market commentary only and may not constitute investment advice of any kind (tax, legal, accounting). This article does not constitute an invitation or recommendation for direct investment in specific financial products. The content is for reference only. Readers should not rely on the information in this document, nor should its actions and omissions be relied upon. We are not responsible for the results of any person’s actions or omissions based on this article. We make no warranties as to the accuracy of the content provided or the adequacy of the information. This article is not intended for distribution within the territory of the People’s Republic of China (excluding Hong Kong, Macau and Taiwan for this purpose), except as permitted by the applicable laws of the People’s Republic of China.

Copyright Notice: Except for the purpose of viewing the information on this website, or as permitted by applicable law or these terms and conditions, no one may copy, use, upload, link, or publicly perform in any way to third parties without our specific written permission , publish or transmit any information or content on this website. We reserve the right to further investigate the legal responsibilities of the relevant actors for the infringing acts of unauthorized reprinting. If you have business cooperation needs such as market promotion and resource exchange, please contact us.

element inside the element. This is probably not what you meant to do! Load your application’s JavaScript bundle inside the element instead.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy