GBP/USD: outlook for August 21-25

GBP/USD: outlook for August 21-25

2019-11-11 • Updated

Reports released this week in the UK showed a mixed picture. Consumer price inflation in Britain unexpectedly held steady in July at an annual rate of 2.6%, despite the fact that analysts were looking forward to a higher number. This news diminishes the pressure on the Bank of England to raise interest rates – not a positive factor for the pound. Retail sales growth exceeded forecasts on the monthly basis, although advance of the indicator in 3 months through July was the weakest in almost 4 years.

In the coming days, Britain will release the second estimate of its GDP growth in the second quarter. According to the initial data, the UK economy expanded by only 0.3% – that’s weak in comparison with last year’s figures.

Uncertainty about Brexit and global risk concerns are having a negative impact on the British currency.

GBP/USD broke below the 50-day MA at 1.2930 at the start of the week and is now consolidating above the 100-day MA at 1.2870. The pair’s currently trading at support line, which connects March and June lows. Decline below the recent lows and 61.8% retracement of June-August rally will open the way down towards the next Fibo level at 1.2735 and 200-day MA at 1.2640. Resistance levels are at 1.2930 and 1.3000. 



Pound Sterling’s Foggy Future
Pound Sterling’s Foggy Future

Weaker recoveries were seen in both the UK manufacturing and service sectors, with the latter recording the greatest loss of momentum since July.

Latest news

Gold is Rising Despite Inflation Returns
Gold is Rising Despite Inflation Returns

Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.

Can the Chinese Economy Recover?
Can the Chinese Economy Recover?

Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.

Deposit with your local payment systems

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.


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!

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