GBPUSD | Perspective for the new week | Follow-up
Updated
Join us as we delve into the latest developments shaping the GBPUSD landscape. The Pound Sterling rebounded in the second half of the week driven by robust Q1 GDP figures from the UK's Office for National Statistics, indicating a resilient economy. With a growth rate of 0.6%, surpassing expectations, the UK appears to be steering clear of recessionary woes.
This buoyant economic growth paves the way for a 'soft landing,' according to Bank of England Governor Andrew Bailey, instilling confidence in inflation returning to target levels. However, amidst this optimism, there's a divergence of opinions within the BoE's Monetary Policy Committee, with talks of a potential rate cut looming.
Meanwhile, across the pond, the US Dollar faces headwinds as jobless claims soar, reigniting concerns about the strength of the labor market. Against this backdrop, all eyes are now on upcoming data releases, including UK labor market statistics and US Consumer Price Index data, as investors brace for potential market shifts.
GBPUSD Technical Analysis:
Will the pound maintain its momentum below the critical $1.25400 zone?
In this video, we've examined the 4-hour timeframes, dissecting bullish and bearish sentiments to unearth the most promising trades for the week ahead. Our analysis dives deep into key levels, trendlines, and support/resistance points, providing invaluable insights into the prevailing market structure.
Our focus remains fixed on the pivotal level at $1.25400 and descending trendline, where the direction of price action could herald the onset of significant market shifts. How the market responds here will chart the course for GBP/USD in the days to come.
Stay engaged and join the discourse in the comment section to stay abreast of the latest developments. Thank you for tuning in, and brace yourselves for further insights into GBP/USD in our upcoming content. Get ready for an exhilarating journey ahead! Happy trading!
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
This buoyant economic growth paves the way for a 'soft landing,' according to Bank of England Governor Andrew Bailey, instilling confidence in inflation returning to target levels. However, amidst this optimism, there's a divergence of opinions within the BoE's Monetary Policy Committee, with talks of a potential rate cut looming.
Meanwhile, across the pond, the US Dollar faces headwinds as jobless claims soar, reigniting concerns about the strength of the labor market. Against this backdrop, all eyes are now on upcoming data releases, including UK labor market statistics and US Consumer Price Index data, as investors brace for potential market shifts.
GBPUSD Technical Analysis:
Will the pound maintain its momentum below the critical $1.25400 zone?
In this video, we've examined the 4-hour timeframes, dissecting bullish and bearish sentiments to unearth the most promising trades for the week ahead. Our analysis dives deep into key levels, trendlines, and support/resistance points, providing invaluable insights into the prevailing market structure.
Our focus remains fixed on the pivotal level at $1.25400 and descending trendline, where the direction of price action could herald the onset of significant market shifts. How the market responds here will chart the course for GBP/USD in the days to come.
Stay engaged and join the discourse in the comment section to stay abreast of the latest developments. Thank you for tuning in, and brace yourselves for further insights into GBP/USD in our upcoming content. Get ready for an exhilarating journey ahead! Happy trading!
Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.
It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.
Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.
Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.
Trade active
As discussed during our live session this morning; two buy positions were triggered. Secure positionsTrade active
#GBPUSDSecure some more profit as new level is identified
Trade active
Despite failing to capitalize on yesterday's gains, the GBPUSD market outlook remains bullish. The latest UK unemployment data, which saw the rate rise to 4.3% was in line with expectations and had no immediate reaction on the market.As we await the release of the US Producer Price Index (PPI) data today, trading activity may remain subdued, with investors adopting a cautious stance. It is essential to lock in existing buy positions, as the PPI report has the potential to influence market sentiment significantly.
Market participants will closely scrutinize the PPI data, as it may provide valuable insights into the future direction of inflation. A stronger-than-expected PPI reading could have a profound impact on the US Dollar, potentially leading to further gains. Conversely, a weaker reading may lead to a reversal of recent USD strength.
In the meantime, we recommend exercising caution and maintaining a bullish bias, while keeping a close eye on the PPI data release.
Good Morning
Trade closed manually
#GBPUSDUPDATE
All buy positions closed; while we still look out for buying opportunities, please note that the breakdown/retest of the ascending trendline and key level at the $1.25400 zone could incite selling opportunities
Note
Following the volatile movement in price action, the sell position got stopped out. The levels on the chart remain our guiding light for new trading opportunities.Trade active
#GBPUSDSecure some profit
Trade active
The buy position initiated yesterday remains active amidst a period of consolidation during the Asian session. Attention now turns to key economic data releases and central bank remarks shaping market sentiment.Of particular interest are the upcoming US Consumer Price Index (CPI) and Retail Sales reports for April. These data points are expected to influence market direction significantly. Additionally, speeches from Federal Reserve officials Kashkari and Bowman are scheduled, adding further potential for market volatility.
Recent economic indicators highlight inflationary pressures in the US economy. The Producer Price Index (PPI) rose by 2.2% year-on-year in April, marking its highest level in a year. The Federal Reserve's acknowledgment of these figures underscores the importance of monitoring inflation trends for future policy decisions.
Market participants will be awaiting today's US CPI data release for fresh insights into inflationary dynamics. A higher-than-anticipated CPI reading could reduce expectations of a future Fed rate cut, thereby potentially strengthening the US Dollar against the British Pound. As such, it is prudent to secure all buy positions ahead of the data release to mitigate potential risks and capitalize on market opportunities.
Good Morning
Trade active
Ensure all buy positions are secured as selling pressure resumes. The plan discussed during our live session this morning remain valid.Note
STRUCTURAL UPDATE | 15 Min TimeframeA simple ascending channel with strategic levels identified on a lower time frame. We shall be using the structures to prepare for the upcoming US economic data. Please note that all levels identified on the 1H timeframe are still valid for trading opportunities.
Trade active
Buy position triggered as CPI data comes as expected; secure positionTrade active
Our buy position initiated yesterday remains active as the GBP/USD pair continues its upward movement. This rise is supported by a weaker US Dollar following the release of softer US CPI inflation data. In April, inflation in the United States eased slightly, with the Consumer Price Index (CPI) rising by 3.4% year-on-year, compared to a 3.5% increase in March.Additionally, the final reading of Retail Sales for April showed no change from the previous reading of a 0.6% increase, falling short of market expectations of a 0.4% rise.
On the UK front, employment data indicated a third consecutive month of deterioration in job market conditions, as the Unemployment Rate rose. Despite this, concerns persist among Bank of England (BoE) policymakers regarding high service inflation, which could hinder progress in the disinflation process. This has introduced uncertainty regarding potential BoE interest rate cuts.
Given the emergence of selling pressure at this juncture, it is prudent to secure the current buy position. The ascending trendline will serve as a crucial reference point to guide today's trading activities.
Good Morning.
Note
Will price action respect the ascending trendline one more time?The levels on the chart will be guiding our trading decisions.
Note
The Federal Reserve's cautious stance on inflation and potential rate cuts this year has led to consolidation in the British Pound over the past 18 hours. Market participants are assessing the implications of the Fed's commitment to maintaining high borrowing costs until more evidence of easing inflation emerges. Attention now shifts to upcoming speeches from Fed officials Kashkari, Waller, and Daly, which may provide further insights.On the UK side, the Bank of England (BoE) recently indicated the need for more evidence of sustained low inflation, though it acknowledged positive movement in the right direction. A potential rate cut in June by the BoE cannot be ruled out, suggesting that the UK central bank might reduce rates before the US Fed. This expectation could weigh on the Pound Sterling and limit the upside of the GBP/USD pair in the near term.
Given these dynamics, we'll rely on the chart levels to guide our trading strategies and identify new opportunities.
Good Morning.
Trade active
Buy position triggered at the $1.26720 level; secure some profit as we look out for new opportunities.Trade active
#GBPUSDUPDATE
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