GBP/USD: outlook for July 10 -14

GBP/USD: outlook for July 10 -14

2019-11-11 • Updated

The British pound fell against the dollar in the past week as the UK data indicated that manufacturing, industrial and construction output declined in May. A slightly stronger USD which was brought about by an upbeat NFP release resulted in a swift correction towards 1.2865.

The economic figures pointing to an economic slowdown released in the course of the past week may prevent the Bank of England from rising its borrowing costs. UK average hourly earnings and unemployment data are due on Wednesday. An indication of wage growth would slightly raise the probability of a rate hike this year and provide a modest support to sterling. Towards the end of the week, traders will be focused on the Fed Chair Yellen’s testimony as well as on the spate of the US economic data. If traders qualify Yellen’s statement as hawkish, the USD will gain some strength. The US inflation report, retail sales, and industrial production data will be released on Friday. Strong readings could also accord some support to the US dollar.  

GBP/USD has recently dropped below 1.2875 (50 day MA). The technical outlook is still neutral though. The pound has likely moved into a consolidation phase. In the upcoming sessions, it will be trading within the broad range of 1.2800 (23.6% Fibo traced from this year low) and 1.3045 (this year high). The immediate bias is to probe lower levels. A break of the lower border of consolidation range will likely lead to the continuation of the downward movement towards 1.2682 (100-day MA), 1.2640 (38.2% Fibo level).

GBPUSDDaily.png

Similar

Oil In The Geopolitical Lens: Soars And Dips Under The Influence Of Global Events
Oil In The Geopolitical Lens: Soars And Dips Under The Influence Of Global Events

Amid uncertainty driven by geopolitical events, oil prices surged to record highs. However, a correction in oil prices is observed with a gradual improvement in the situation in the Middle East and an increase in demand. The question facing investors is whether there are prerequisites for further price growth or if everything depends on the dynamics of the political landscape. In this article, we will explore the impact of recent events on the global oil market and the prospects for developing this crucial commodity sector.

How Will China’s Regulation Affect Oil?
How Will China’s Regulation Affect Oil?

China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.

Latest news

US100: Has the correction ended?
US100: Has the correction ended?

Bullish Scenario: Buys above 17910 with TP:18098.07, TP2:18277, and TP3: 18415 Bearish Scenario: Sells below 17850 with TP1:17730, TP2: 17700

Stocks To Watch For March
Stocks To Watch For March

During his program on CNBC on February 28, Jim Cramer expressed frustration with the impact of earnings reports on market behavior, noting how they often prompt rash decisions by average investors. He criticized the short-term focus and lack of attention to nuance in news coverage of earnings. Cramer cited examples of Home Depot and Lowe's, highlighting how investors reacted hastily to headline news without considering the broader context provided in earnings calls.

Nasdaq, S&P 500 Reach Record Highs
Nasdaq, S&P 500 Reach Record Highs

After creating record highs, Wall Street's main indexes opened on Wednesday and began to edge lower, reflecting cautious sentiment among investors. They're eagerly awaiting crucial inflation data that could impact the U.S. Federal Reserve's interest rate decisions. The upcoming release of the personal consumption expenditures (PCE) price index is expected...

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.

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!

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