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

How will the reporting season affect US indices?
How will the reporting season affect US indices?

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.

Stocks to trade in July
Stocks to trade in July

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.

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

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