Jump to content
The Twitter Feeds are now back on the Platform ×

GBP climbs as new UK PM Rishi Sunak settles in


Recommended Posts

Despite criticism about a cabinet appointment, the first full day of office for the new prime minister, Rishi Sunak, has been met with the second day of gains for sterling.

 Jeremy Naylor | Writer, London | Publication date: Wednesday 26 October 2022

GBP/USD is now back to the point it was at when Liz Truss first took up the job eight weeks ago, and is being supported by an uptrend in GBP/EUR.

As the UK's new prime minister Rishi Sunak has his first full day as the leader of the UK's parliamentary party, the Conservatives, we've seen an improvement in sterling's performance against a basket of currencies.

GBP/USD

I want to take a look first of all against the US dollar.

Now look, I know the US dollar is pulling back in the markets which does give sterling an extra lift, but significantly, possibly today we are now at the levels we were at when Liz Truss came to power just a matter of weeks ago in the beginning of September.

This ellipse I've drawn here is the point the markets were at at that point in time and you can see this lift now brings us up to those levels once again. So there is a big recovery from the lows we had when Kwasi Kwarteng got up to speak and gave his first and only mini-budget or fiscal statement. Since then the markets have been appreciating the move.

GBP/EUR

Now, as I said, the US dollar is on the way down. So the better way to look at this possibly is with sterling against the euro.

Now we've got this rising line of support in place here. We got the second day of gains. Again, the ellipses where we saw Liz Truss take over. So we are yet to achieve that level of 11,632 is turning against the euro. But, nonetheless, we are still long on this at 11,550, like against the US dollar.

If you are long on this market, you'd be putting your stop below yesterday's low point of the candle, around about the 11,400 level, with a view to taking it up at least to this line at 11,632 which coincides with the 100-period moving average.

So, Rishi Sunak in his first full day in office, sterling game for a second day in a row.

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
      21,701
    • Total Posts
      92,068
    • Total Members
      41,986
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    dazzlingcheeseburger
    Joined 01/04/23 12:10
  • Posts

    • Hello everyone, i am looking to hold shares long term Apple Tesla in a spreadbetting account just wounded if there is a calculation example Tesla $195.00 1 share = ? ponds per point spread bet. Thanks for any help
    • #USDCAD: Time For PullbackUSDCAD reached a key level.Testing that, the price broke and closed above the resistance line of a falling wedge pattern.I expect a pullback now.Goals: 1.355 / 1.3577  
    • Charting the Markets: 31 March The FTSE 100, DAX 40 and Nasdaq 100 surge higher on a positive outlook as EUR/USD, GBP/USD pause their ascents while USD/JPY continues to rise as the greenback appreciates. WTI remains capped by resistance, gold forms a technical triangle as Robusta coffee trades near six-month highs.   Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 31 March 2023                 This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
×
×
  • Create New...