GBP: long-term outlook

GBP: long-term outlook

2020-06-12 • Updated

Technically, the GBP hasn’t moved much from the zone it has been in since 2018. Against the USD, the British pound has been in a zig-zag-shaped larger trend for the last 1.5 years, capped by 1.3340 and supported by 1.2070. Currently, it is in the middle of that channel experiencing an increasing bearish gravity. EUR/GBP, on the other hand, looks more stable and concentrated in a larger channel capped by 0.9050 and supported by 0.8660 for the last 3 years. Disturbances in the Eurozone are the main factor holding this currency from lifting upwards. The GBP definitely has a tough year ahead, hence the downward forces pressing on the GBP/USD and the upward forces pushing the EUR/GBP will be constantly testing further limits in the respective directions.

Fundamentally, the latest reports say that the UK economy shrank 20% during April bringing it back to 2002 state and seeing a plunge in the output of 11%. Altogether, that makes observers expect full recovery to pre-virus state not earlier than in 2022. From a human point of view, that’s a hard pill to swallow. Form a trader’s point of view, that gives clarity to the fundamental background you operate in. Set your farthest targets accordingly.

5.png

                                                                                                  LOG IN

Similar

Trade ideas for March 28 - April 1
Trade ideas for March 28 - April 1

Last week marked the consolidation for the most active assets of March 1-15 (which is oil and gold). But next week has a lot to show, be ready to take part!

Latest news

Walmart earnings outlook
Walmart earnings outlook

Walmart is one of the biggest retail corporations in the US, with $244 billion in total assets. Does it worth buying amid rising prices and supply concerns that shatter the world economy?

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera