Analysis and Strategy for GBPUSD
Current Situation:
The GBPUSD has surged from 1.23 to 1.28 based on the recent weakness in the DXY (US Dollar Index). However, upcoming news events and economic data releases suggest that the pair may correct back to the 1.25 level.
Upcoming News Events and Data Releases:
May 30, 2024:
Preliminary GDP q/q: A measure of the annualised change in the inflation-adjusted value of all goods and services produced by the economy. Higher-than-expected GDP growth can strengthen the USD.
Unemployment Claims: The number of individuals who filed for unemployment insurance for the first time. A lower number suggests a stronger labor market, potentially boosting the USD.
Pending Home Sales m/m: Measures the change in the number of homes under contract to be sold but still awaiting the closing transaction. Strong data can support the USD.
FOMC Meeting: Statements and interest rate decisions from the Federal Open Market Committee can significantly impact the USD.
May 31, 2024:
Core PCE Price Index m/m: A major inflation indicator for the USD. Higher-than-expected inflation can lead to increased expectations of interest rate hikes, strengthening the USD.
Interest Rates:
USD: 5.5%
GBP: 5.25%
Currently, interest rates favour dollar strength, suggesting potential downside pressure on GBPUSD.
Interest Rate Reviews:
GBP: June 20, 2024
USD: June 11-12, 2024
Trading Strategy:
To capitalise on the potential retracement down to 1.25, place short orders once the price breaks and stabilises below the 1.27 level.
Keep an eye on the economic calendar when placing your entries!
Good luck guys!
Current Situation:
The GBPUSD has surged from 1.23 to 1.28 based on the recent weakness in the DXY (US Dollar Index). However, upcoming news events and economic data releases suggest that the pair may correct back to the 1.25 level.
Upcoming News Events and Data Releases:
May 30, 2024:
Preliminary GDP q/q: A measure of the annualised change in the inflation-adjusted value of all goods and services produced by the economy. Higher-than-expected GDP growth can strengthen the USD.
Unemployment Claims: The number of individuals who filed for unemployment insurance for the first time. A lower number suggests a stronger labor market, potentially boosting the USD.
Pending Home Sales m/m: Measures the change in the number of homes under contract to be sold but still awaiting the closing transaction. Strong data can support the USD.
FOMC Meeting: Statements and interest rate decisions from the Federal Open Market Committee can significantly impact the USD.
May 31, 2024:
Core PCE Price Index m/m: A major inflation indicator for the USD. Higher-than-expected inflation can lead to increased expectations of interest rate hikes, strengthening the USD.
Interest Rates:
USD: 5.5%
GBP: 5.25%
Currently, interest rates favour dollar strength, suggesting potential downside pressure on GBPUSD.
Interest Rate Reviews:
GBP: June 20, 2024
USD: June 11-12, 2024
Trading Strategy:
To capitalise on the potential retracement down to 1.25, place short orders once the price breaks and stabilises below the 1.27 level.
Keep an eye on the economic calendar when placing your entries!
Good luck guys!
Note
Prelim GDP and Unemployment Claims are out guys. DXY has had a negative reaction to this. Keep an eye on price action! Incoming short term rally!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.