What numbers are telling about the macroeconomic conditions around GBPUSD pair?
GBIR 2.3%
GBINTR 4.75%
GB02Y 4.4%
Basically, UK is not facing hard challenged as EU currently facing, which means GBP has stronger grounds against the USD strengthening.
Still I expect GBPUSD to visit 1.2300 and 1.2000 levels before evaluating market's next direction of trend.
There will be 2 major contributors to the GBPUSD fall.
1. Shrinking EU economy.
As GB has strong economic ties with EU falling Euro will also drag GBP down partly.
2. Tightened monetary policy.
Currently inflation rate in UK is not far from the target rate which is 2%. However, lending rate of BOE is high, sitting at the level of 4.75%. Considering that the current Labour government will boost construction and development industries business will need to be able to obtain cheaper borrowing, as current rates is against the tide of the targeted housing developments. BOE will decrease the rates probably 4 times and I believe in the correlation with FED in 2025 which will boost GBPUSD to continue its downtrend.
Currently, we are watching for sell trade opportunities in GBPUSD on lower time frames.
GBIR 2.3%
GBINTR 4.75%
GB02Y 4.4%
Basically, UK is not facing hard challenged as EU currently facing, which means GBP has stronger grounds against the USD strengthening.
Still I expect GBPUSD to visit 1.2300 and 1.2000 levels before evaluating market's next direction of trend.
There will be 2 major contributors to the GBPUSD fall.
1. Shrinking EU economy.
As GB has strong economic ties with EU falling Euro will also drag GBP down partly.
2. Tightened monetary policy.
Currently inflation rate in UK is not far from the target rate which is 2%. However, lending rate of BOE is high, sitting at the level of 4.75%. Considering that the current Labour government will boost construction and development industries business will need to be able to obtain cheaper borrowing, as current rates is against the tide of the targeted housing developments. BOE will decrease the rates probably 4 times and I believe in the correlation with FED in 2025 which will boost GBPUSD to continue its downtrend.
Currently, we are watching for sell trade opportunities in GBPUSD on lower time frames.
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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.