GBP/USD: outlook for June 19 -23

GBP/USD: outlook for June 19 -23

The British pound gained as more members of the Bank of England monetary policy committee voted for the rate increase. The BOE decided to maintain its monetary policy settings but at 5-3 vote. Three dissenters advocating rate hike became increasingly worried about the inflation that could easily reach 3% by the fall and thereby flatten British consumers’ wallets. Others seemed to be more concerned with hardships the UK may experience during the Brexit. Sterling rose to 1.2795 on the announcement and managed to retain its strength in subsequent sessions. In the US, the Fed raised its interest rate on Wednesday. But this didn’t help the USD to climb higher, as rate increase was overshadowed by extremely soft consumer prices and weaker retail sales released ahead of the FOMC meeting.

Next week, the quotes will likely be led by political goings-on as the economic calendar for GBP/USD is very light.  Brexit negotiations will start the week, as main negotiators agreed to launch them on Monday, June 19. Then, we will hear the speeches of several Fed’s officials that are set to uncover their further monetary policy projections. Datawise, pay attention to the UK public sector net borrowing report and the US jobless claims coming on Wednesday and Thursday respectively. The clamor surrounding the investigations into Russian interference in the 2016 US presidential elections will continue to weigh on the USD.

GBP/USD rose to 1.2775 in the course of the past week. While downside momentum is still intact, the quotes have scope for a further extension to at least 1.2820. The solid resistance at 1.2835 (50-day MA) may prevent quotes from rising higher. The break of 1.2625 will be a good indication that we have moved into bearish phase. The next support from there can be found at 1.2560 (200-day MA).



Latest news

GBP/USD: pound entered into channel Tenkan-Kijun

Bullish Ichimoku Cloud with horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen with horizontal lines; the market is under strong resistance and prices entered into the channel Tenkan-Kijun.


Deposit with your local payment systems


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

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