Pound Strong against the Dollar
Today we face UK economic data, trade balance, GDP growth, and business sentiment. An upward correction to 0% levels is expected versus -0.2% GDP in the previous quarter. In other words, a small economic recovery from last year of -0.2% to 0.3% is the forecast. Already yesterday the Bank of England reported that the interest rate would be maintained at 5.25%. There has been a perceived reduction in the amount of cash capital circulating in the market.
Looking at the chart, we can see that the GBPUSD is likely to start to depreciate towards $1.24934 so the USD is possibly losing ground as both countries have started to contract their capital in circulation and started to have “hawkish” policies compared to the Euro zone which remains “dovish” and does not want to reduce its economic expansion by tightening its rates. The current RSI value is in its middle zone at 54%, so we may see a correction as soon as institutional traders begin to reflect their activity. The checkpoint as we say is in the area of 1. 24934 dollars, so there is still room to go to the bottom at 1.24447 dollars per pound.
Ion Jauregui - AT Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Looking at the chart, we can see that the GBPUSD is likely to start to depreciate towards $1.24934 so the USD is possibly losing ground as both countries have started to contract their capital in circulation and started to have “hawkish” policies compared to the Euro zone which remains “dovish” and does not want to reduce its economic expansion by tightening its rates. The current RSI value is in its middle zone at 54%, so we may see a correction as soon as institutional traders begin to reflect their activity. The checkpoint as we say is in the area of 1. 24934 dollars, so there is still room to go to the bottom at 1.24447 dollars per pound.
Ion Jauregui - AT Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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