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Pound

Time for GBPUSD to give up?I'm short on GBP USD, it's failed to make a new high, failed to break back above the dynamic ascending trendline. Inflation is still high, despite rate hikes. Economy is in a pickle, with really poor retail data today. UK is the worst performing economy in Europe. There's RSI divergence. We're on a longer term downward trend so if this is to be broken I think we'll see retracement first. Conversely there's been a double bottom on DXY, it's due a retracement after 5 weeks of decline. USD doesn't look great either, but to me it looks better than GBP. This is why I'm short on cable, with a great R:R.
Short
by Finchcliffe
2
GBPUSD: Waiting for Confirmation of Bearish TrendThe GBPUSD pair has formed a double top pattern, with divergence on momentum indicators, and is now completing a head and shoulders pattern. To confirm the start of a bearish trend, I will wait for the price to break below the neckline at 1.2350. However, I will likely wait for the price to bounce off support levels and re-enter slightly above the neckline (around 1.237), when it has captured some liquidity from traders anticipating a rapid decline, before entering a short position. This will enable me to capture more liquidity at a better price and minimize losses. When trading, it is important to remember that the majority of traders (90%) lose money. Therefore, one should only sell at the highest possible price and buy at the lowest possible price, even if it means missing out on some opportunities. It is also crucial to avoid placing stop-loss orders in easily accessible locations, as prices often return to areas of liquidity. Finally, instead of chasing prices, one should wait for them to come to their desired conditions. ------------------------------------------------------------------------- Let me know your thoughts in the comments, and show your support by liking the idea. Please follow if you're interested in more ideas like this. Your support is greatly appreciated!
Short
by Candlestick_OB
Destablising Inflation Concerns Weigh on the GBP In March 2023, the United Kingdom's year-on-year consumer price inflation rate decreased to 10.1% from 10.4% in February. However, it exceeded the market forecast of 9.8%, and Britain remains the country in Western Europe with the highest rate of inflation. This also marks the seventh consecutive period where the rate has remained above 10% and has been above the Bank of England's 2% target for nearly two years. Consequently, policymakers will have to consider raising borrowing costs more than previously expected. Deutsche Bank has increased their projections for UK rates by anticipating two additional 25 basis point rate hikes from the Bank of England. Meanwhile, Morgan Stanley forecasts a single rate hike, but there is a possibility of a second one. British finance minister Jeremy Hunt said on Wednesday that "When inflation is above 10%, it is destabilising for the economy. It is not a good place to be, ultimately it is dangerous if you leave it there,". The seesawing in the GBP in reaction to this inflation data drop has perfectly encapsulated these projections for more rate hikes and fears for a destabilised economy. Still, the GBP/USD has been able to fend off a position below 1.24000 and is currently testing the fortitude of 1.24352 as a support. Upside potential could be limited by resistance at 1.24494 and 1.24738 considering that the market has likely already priced in a 25-basis-points hike at the Bank of England’s next meeting on May 11.
by BlackBull_Markets
GBP/USD Rises on UK CPI Data. Long Scenario.The GBP/USD pair is exhibiting bullish tendencies and has made strides towards the 1.2450 level in the early hours of Wednesday. The latest UK data indicates that the annual core CPI remained steady at 6.2% in March, surpassing the market's anticipated value of 6%, thus contributing to the appreciation of the Pound Sterling. During the opening London session, the Pound experienced a slight retreat, falling to 1.24000. While lower timeframes suggest bearish momentum for the GBP/USD pair, the higher timeframes reflect a strong Pound. Today's market developments will be crucial in determining the Pound's position.
Long
by FOREXN1
5