Jump to content

British Pound Latest: Will GBP/USD Test 1.2000?


Recommended Posts

GBP/USD, EUR/GBP - Prices, Charts, and Analysis

  • UK data will steer Sterling this week.
  • GBP/USD remains pressured to the downside.

British Pound Latest: Will GBP/USD Test 1.2000? | MENAFN.COM

Cable (GBP/USD) opens the week on the backfoot and trades just above last week’s two-year low (1.21560) as the market prepares for the latest UK jobs and inflation releases. On Tuesday the jobs report is expected to show the UK unemployment rate steady at 3.8%, below pre-pandemic levels, while on Wednesday the inflation report is expected to show headline inflation for April hitting 9.1%, with the core reading expected at 6.2%. UK inflation is currently at its highest level seen in 30-years. While the Bank of England has warned that inflation will continue to rise in Q2, headline inflation in excess of 9% will still rattle markets.

The Treasury Select Committee will have a chance to grill the UK central bank about inflation, among a number of topics, later today (15:00 UK) with Andrew Bailey, Dave Ramsden, Michael Saunders, and Jonathan Haskel all appearing to discuss the May Monetary Policy Report

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

Away from economic data, political risk is likely to ramp up further in the next few weeks as the UK gears up to alter parts of the Northern Ireland Protocol, an action that will likely lead to EU retaliation. Irish Minister for Foreign Affairs, Simon Coveney, recently said that there was a possible landing zone for talks between the two parties, but if the UK moved unilaterally then the EU response would be very negative. Political risk is back and will weigh on Sterling.

 

GBP/USD has fallen over 20 big figures (15%) over the last year on a combination of Sterling’s weakness and US dollar strength. In the short-term, there is little reason for this backdrop to change although the USD may be nearing the last leg of its multi-month move. Support for the pair looks likely at 1.2000, if we get there, with last week’s high around 1.2415 likely to act as first-line resistance.

GBP/USD WEEKLY PRICE CHART, MAY 16, 2022

British Pound Latest: Will GBP/USD Test 1.2000?

Retail trader data show 81.09% of traders are net-long with the ratio of traders long to short at 4.29 to 1. The number of traders net-long is unchanged than yesterday and 6.58% lower from last week, while the number of traders net-short is 4.85% lower than yesterday and 5.59% 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 Sterling – bullish or bearish?

 

May 16, 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
  • image.png

  • Posts

    • In a world where gaming is one of the most used forms of relaxation, a good number of projects have evolved to give gamers an immersive experience alongside passive earning opportunities to earn from. Through time, there has been a plethora of crypto gaming projects. With AxieInfinity being its progenitor, we have witnessed expansive growth with how certain projects have extended its tentacles. Currently, one of the projects that has caught my eye is $NADA. The project is one of the pioneer gaming models on the Hedera Blockchain Network. Primarily, it seeks to be used in blockchain based NFT mobile games where the latter and metaverses are interconnected seamlessly. Most of the games it is associated with have considerable pedigree in the global market. In a bid to let users earn seamlessly, NADA looks to allow players earn tokens through game play thus projecting gamefi. In the exactitude of real world use-cases, the token can be used for purchasing in game items, et al. Deducing from all of its features, it is incredibly worthy to note that the token has good use cases and tokenomics. In recognition of this, reliable platforms like Bitget have expressed intent to list it along a significant number of activities to earn from, depositing the token is even opened on there already. Conclusively, I'll love to hear your thoughts on this new model? 
    • Blockchain and gaming complement each other nicely. Their fusion has enabled real rewards for gamers, something that traditional games don’t offer. What’s more, BlockchainxGaming effectively manages the ownership and transaction history of game characters, items, etc, enforces property rights, promotes transparency, stability, reliability and improves fun. As blockchain and NFT-based games continue to drive the game market's growth, the hunger to play more and earn more deepens. Nada Protocol is proposing a blockchain technology and ecosystem with customized structure that will fuse with the global mobile game market and NFT blockchain game market, satisfying game players’ cravings with a more immersive mobile game experience where they can own and trade the items they earn from the game. NADA focus seems to be centered around creating a fun blockchain gaming ecosystem that adds the value of economic activity to the pleasure of gameplay. One of the most significant of its core features is a buzzing marketplace where users can conveniently find the items they want and trade them with other users. Much of the activities in Nada marketplace is controlled by NADA token, a reward-type token built on the Hedera network, and currently building up liquidity to list on Bitget. What’s your thought on this fast-growing game and its chances to carve a niche for itself in the competitive gaming world?
    • Thanks very much, @KoketsoIG. I hadn't discovered the drop down menus - it all makes much more sense now! It's odd about the E1 contracts - it must be a new change, because I'm in the UK and I currently hold some of the E1 positions that I opened a few weeks ago. Anyway, at least now I understand what's going on. I'll try not to bother you with too many questions as I get used to the new platform! Best wishes, Cate
×
×
  • Create New...
us