Jump to content

GBP/USD Remains Under Pressure Despite Robust UK PMI Headlines


Recommended Posts

GBP/USD PRICE, CHART, AND ANALYSIS

  • UK PMIs mixed to stronger but fears remain.
  • GBP/USD is unchanged as the US dollar remains in the driving seat.
 
British Pound Dollar Outlook: GBP/USD Remains Under Pressure at 1.3000

A robust set of UK PMI preliminary readings for March with the UK services sector, in particular, showing further improvement. The manufacturing number missed expectations, while the composite number beat forecast but failed to match last month’s number.

GBP/USD Remains Under Pressure Despite Robust UK PMI Headlines

For all market-moving economic data and events, refer to the DailyFX calendar

According to Chris Williamson, chief business economist at S&P global, ‘the outlook darkened as concerns over Russia's invasion exacerbated existing worries over soaring prices, supply chains and slowing economic growth. Business expectations are now at their lowest for almost one and a half years, pointing to a marked slowing in the pace of economic growth in coming months’. Mr. Williamson added that ‘prices pressures have spiked higher due to increased energy and commodity prices resulting from the invasion. With March seeing by far the largest rise in selling prices for goods and services ever recorded by the survey, consumer price inflation is set to rise further in the months ahead’.

Full UK PMI Release

The release had little effect on an already weak GBP/USD as the US dollar continues to drive action in the pair. Various Fed members spoke yesterday saying that the next interest rate hike in the US should be 50 basis points and not the standard 25 basis point rise, and called for the Fed to frontload rate hikes to try and quell rampant inflation.

GBP/USD is retesting short-term support around the 1.3160 level and may well look at the recent 1.3000 double-low again.

 

GBP/USD DAILY PRICE CHART – MARCH 24, 2022

GBP/USD Remains Under Pressure Despite Robust UK PMI Headlines

Retail trader data show 70.57% of traders are net-long with the ratio of traders long to short at 2.40 to 1. The number of traders net-long is 11.68% higher than yesterday and 1.77% lower from last week, while the number of traders net-short is 14.91% lower than yesterday and 14.68% higher from last week. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall.

Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBP/USD trading bias.

image.png

What is your view on GBP/USD – bullish or bearish?

 

Mar 24, 2022 |  DailyFX
Nick Cawley, Strategist

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      19,526
    • Total Posts
      86,917
    • Total Members
      68,779
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Btcpro1
    Joined 12/08/22 13:09
  • Posts

    • KLA Corp., Elliott Wave Technical Analysis KLA Corp.,(KLAC:NASDAQ): Daily Chart, August 12, 2022,  KLACStock Market Analysis:Looking for further continuation lower into wave c) of {ii}. Wave (b) may not be finished, however I am still looking for further downside after the initial move up we had in a five wave manner. KLAC Elliott Wave count:  Wave c) of {ii}. KLACTrading Strategy: wait for the end of wave {ii} to start building long positions to target ATH. KLAC Technical Indicators:We are above all EMAs which suggests we have resumed the uptrend. We could find support off the 200 EMA. TradingLounge Analyst: Alessio Barretta       KLACorp.,KLAC: 4-hour Chart, August 12 2022,  KLA Corp., Elliott Wave Technical Analysis KLAC Stock Market Analysis: Looking for completion of wave (b) to then resume downside into wave c) which could eveb be traded on short timeframes. KLACElliott Wave count:  Wave c of (b). KLAC Technical Indicators: We are facing resistance off the 20 EMA which could be a sign wave (b) is completed or nearly completed. KLACTrading Strategy: You could either look for shorts into wave c) or/and wait for a larger swing once wave {ii} is finished and target he upside with wave {iii}.
    • Elliott Wave Analysis TradingLounge 3-Daily Chart, 12 August 2022, Monero(XMRUSD) XMRUSD Elliott Wave Technical Analysis Mode: Motive Structure: Impulse Position: Wave I Direction Next higher Degrees: Wave C of Zigzag Details: The sub-wave of the first wave is about to end. Watch out for the reverse in Wave Cancel invalid Level: Monero(XMRUSD) Trading Strategy: The entry price is entering the last wave of the first wave. And it is going up to test resistance at MA50, waiting for a reversal in the second wave to enter the trend again. Monero(XMRUSD) Indicators: MACD and MACD Histogram have a reversal signal in an uptrend. TradingLounge Analyst: Kittiampon Somboonsod Elliott Wave Analysis TradingLounge 4H Chart, 12 August 2022, Monero(XMRUSD) XMRUSD Elliott Wave Technical Analysis Mode: Motive Structure: Impulse Position: Wave ((4)) Direction Next higher Degrees: wave I of C Details: Entering the fifth wave. Watch out for the reverse Wave Cancel invalid Level: Monero(XMRUSD) Trading Strategy: The short-term rise of the fifth wave After the fourth wave The level of the end of the triangle pattern is at The end of wave D, but if the price descends below the end of wave E, it is possible that the fifth wave may end at wave B. Monero(XMRUSD) Technical Indicators: MACD and MACD Histogram continue in the same direction.
    • Hi @ArturG, I added a response on the thread you shared. Effectively, the rule apply to UK clients. You can find the relevant text here:https://www.legislation.gov.uk/eur/2014/1286/body I hope that it helps ! All the best - Arvin
×
×
  • Create New...