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Britishpound

British PoundGBPUSD seems will move to the lower line. However, for what reason is the British Pound sterling going low? Why the British Pound Sterling is Such an Expensive Currency Inflation Plenty of folks throw the word “inflation” around without really understanding what it means. But inflation is one of the best explanations why the pound is just about 1.2 the amount of the US dollar. According to this article , inflation can be defined as the rate of increase in the price of goods and the “decrease in purchasing power of funds.” To understand this fully, we’d have to look at Britain’s exportable goods. Some of the UK’s top exports include various machinery, cars, precious metals and minerals, pharmaceuticals, and more. The demands for these products are constantly high, and so the pound is always on an incline. With Britain’s inflation rate lower than many countries, its purchasing power is therefore higher. This is one reason why the pound exchange rate is strong and why it almost always is. Speculation Investors have a lot of control over what goes on with the global currency exchange. When we begin to talk about speculation and how much it affects the rate of the British pound, it’s sometimes hard to believe. Speculation merely refers to the conclusions made by experts in the finance industry regarding the value of a specific currency. For example, if economists speculate that the value of the pound is going to increase (or is already in an increasing track) , investors are more likely to demand and invest in that particular currency. When investors put in large sums of money to invest in the currency in order to make a larger profit margin, the exchange rate volatility is heavily affected in return. The British pound has been a strong currency for a while now, and investors still believe this currency is worth investing in. Until this cycle is broken, investors will continue to affect the strength of the pound in an increasing way. Balance of Payment This is probably one of the more important factors in the characteristic of the current pound sterling currency. Simply put, the Balance of Payment (or BoP) is a country’s record of the transaction with the rest of the world. The BoP shows the flow of money in and out of a country with regards to its export and import behavior. Most countries have a deficit on their account, but this simply means that the value of imported goods is higher than the value of the export goods. Currently, Britain has had its narrowest deficit since 2012 at about £ -30.1 million. As a comparison, America’s current BoP deficit is roughly USD$ -130.4 billion. Deficits and Surpluses can’t define the value of a currency, but they sure do count as huge factors. Government Debt The amount of a government’s debt can have a tremendous impact on the value of a currency. For instance, if foreign investors believe that a country will not be able to pay its debt, the only logical move to do is get rid of holdings in that country. The UK’s government debt actually just surpassed the £1 Trillion mark, and this is certainly not good news for anyone. To put it into perspective, America’s government debt is recently calculated to be roughly $22.78 Trillion. While the UK is light years behind America in debt, it’s important to know that the debt is really not the key to currency value. It’s the belief of whether the country in question is capable of paying that debt down. Britain has always had solid government debt ideas, but Britain’s system does need an overhaul. Whether that will happen soon enough doesn’t really matter. What matters is that foreign investors trust in the value of the pound, and so its value actually increases. Sentiments Here’s another reason why the British pound sterling is such an expensive currency: sentiment . Sentiment ties in with speculation, but this time it’s just on the average citizen or collective. We’re no longer talking about what the economists are saying or what the experts are thinking. When you’re talking about sentiment, you’re simply going by the opinion of the individual or the group. You could say that one reason why the British pound is valued so high is that people believe that it has a high value. It just happens to be the majority opinion. If that opinion begins to decline, there’s a possibility that the value of the pound could go down as well. Observing the sentiment of the nation towards its currency will show how much value that currency has. There’s a tiny correlation between the positive opinion of a nation regarding its currency and the actual value of the currency locally and internationally.
Long
by RyodaBrainless
British Pound / U.S Dollar Hello and welcome to another analysis ******* the GBP USD market is at the start of a downtrend , he will try to hit the point 1.2923 in this case there are two possibilities either it will break this point and continue in a downtrend or a market reversal and start an uptrend , in this case it will continue and try to break the old point 1.2988 => i am a consultant, if you want any help i am here for you in any market and time , Contact me . Thanks you ATSELECTION .
Short
by ATSELECTION
4
GBPUSD is close to the Support/Resistance Zone!The trend is bullish now! After this correction down move we can look for the Buy entry above the Support/Resistance Zone Potentially the next high can be higher than the previous. The profit will be 3 times bigger than the risk. Thank you very much and thank you to the responsive commentators for their understanding. I spend my personal time tracking the market situation and share my opinion openly with you. These ideas are not a channel with signals and I do not give recommendations on the entry/exit points. In my reviews, I provide analytics - those data that help model potential options/scenarios for price movements! Push like if you think this is a useful idea! Before to trade my ideas make your own analysis. Write your comments and questions here! Thanks for your support!
Long
by Yuriy_Bishko
4
EURAUD, The most possible movement!The price is close to the Support/Resistance Zone. If the daily bar will close above the zone I will look for the Buy entry. The potential profit will be 3 times bigger than the risk. Push like if you think this is a useful idea! Before to trade my ideas make your own analysis. These ideas are not a channel with signals and I do not give recommendations on the entry/exit points. In my reviews, I provide analytics - those data that help model potential options/scenarios for price movements! Write your comments and questions here! Thanks for your support!
Long
by Yuriy_Bishko
9
Fractal failurePrice failed to complete a fractal on 2 weekly chart and is moving away from it. Things started to go wrong in July last year...something to do with Brexit and this "wrong bias" keeps going... We see accumulation above the failed fractal and price is likely to push higher making higher high. THIS IS NO TRADE SETUP BUT GENERAL OUTLOOK TO IDENTIFY LONG TERM BIAS. as many cant make sense of whats going on with this messy pair. Top Absolute Correlation 1 WEEK 1 EURGBP - GBPCHF -93.6% 2 EURGBP - EURCAD 90.3% 3 EURGBP - GBPSEK -88.5% 4 EURGBP - EURSGD 86.0% 5 EURGBP - XAUGBP 84.9% 6 EURGBP - CADCHF -83.9% 7 EURGBP - EURMXN 83.8% 8 EURGBP - CHFSGD 83.6% 9 EURGBP - NOKSEK -83.5% 10 EURGBP - USDRUB 82.4%
Long
by ICFX