GBP/USD update
Updated
GBP/USD is seeing its strongest monthly performance since November last year. The bullish drive in the pair has been intact since the start of July as it attempts to breach the 1.30 mark for the first time in a year. The RSI has ventured into overbought territory but the appetite for further gains keeps the path of least resistance higher for the time being. This time last year when GBP/USD breached 1.3140 we saw the RSI push a little higher than the current level, suggesting we could see further bullish drive ahead.
Further weakness in the US dollar is likely to help the pair gather that last bit of drive needed to breach 1.30, which can be seen as a psychological resistance level. The calendar is going to be a busy one for the UK this week as CPI, employment, and retail sales are all lined up. Inflation is expected to have softened further in June but wages could continue to put upward pressure on prices, which would continue to limit the Bank of England’s ability to cut rates. Odds for an August rate cut currently stand at 50%. How these expectations evolve following the data will likely impact GBP/USD. For now, UK yields are slightly stronger than US yields, which plays in favour of GBP/USD
Further weakness in the US dollar is likely to help the pair gather that last bit of drive needed to breach 1.30, which can be seen as a psychological resistance level. The calendar is going to be a busy one for the UK this week as CPI, employment, and retail sales are all lined up. Inflation is expected to have softened further in June but wages could continue to put upward pressure on prices, which would continue to limit the Bank of England’s ability to cut rates. Odds for an August rate cut currently stand at 50%. How these expectations evolve following the data will likely impact GBP/USD. For now, UK yields are slightly stronger than US yields, which plays in favour of GBP/USD
Note
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.01% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
The information provided is not to be considered investment advice or investment research. Capital.com will not be liable for any losses from the use of the information provided.'
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.