Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
GBP: staying power
2022-12-20 • Updated
Let’s look at what the GBP’s doing today and put things in perspective.
GBP/USD: high rise – short life?
Against the USD, it’s testing the four-week high of 1.39. Technically, it’s already above that level but there is little reason to expect that the pair firmly established itself in that zone. The primary reason for the move of the GBP/USD is the weakness of the USD – not the strength of the pound, and the reason for that weakness is of temporary nature related to the US Treasuries. That’s why traders should expect volatility and a rather quick comeback from the USD. Therefore, looking for reversal short-term patterns to expect a following downswing in the GBP/USD would probably be an appropriate scenario.
EUR/GBP: to the February highs - and back down?
On a long-term view, EUR/GBP is completing a tip and going back to fall to 0.85. Currently, the zone where EUR/GBP trades corresponds to the February highs. Recovering the losses in March, EUR/GBP went upwards to touch the zone 0.87-0.8720, and very possibly, that may be the end of the upswing. Therefore, for a mid-term and long-term trading strategy, expecting a drop to 0.85 in the coming weeks seems a very reasonable scenario as the British pound remains considerably strong across the board.
When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.
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