Jump to content

GBP rebounds against USD, EUR after UK economy expands

Recommended Posts

Bucking a trend, UK growth in October rebounded from September’s contraction and sterling continues to rebound against the US dollar and the euro.

 Jeremy Naylor | Writer, London | Publication date: Monday 12 December 2022 

UK GDP growth

Despite a widely-held belief that the UK economy is already in recession, we've seen month-on-month GDP, which shows growth of 0.5%.

Let's take a look at the figures as they stand out the release today. After a decline of 0.6% in September, this rebound came after the economy got back up and running after the national period of mourning for the Queen during September.

Car sales rebounded and there was strong growth activity as well in the health sector. However, the UK manufacturing sector shrank about 4% this year, according to the data out today and is forecast to fall by a further 3.2% in 2023.


Let's take a look at what's happening with sterling. This is sterling against the US dollar. We are long on this going into what is a period up here of resistance. We're currently trading 12271.

If you are long and you want to put a trade on now, your stock would go under the underside of this red line here, which is a 200 day moving average just below the 121 level. Now, 12344, that's a little bit of resistance. And you can see this has been a line we've been following since June this year. But if we do get a candle close beyond that on the upside, 12660 is the next line. That would be a price target on a long trade.

If you are long sterling against the US dollar.

Now this data comes today after on Friday we heard from the UK government announcing extensive reforms to financial regulation that it says will overhaul EU laws that it says choke off growth now.


Sterling against the euro rose strongly on Friday around that data and we're holding on pretty much to the midpoint of that at the moment.

At 11622, we've got some resistance kicking in at one 1650 or so. And that would be an interesting point upon which to go long. If we see a candle close beyond that, then you're on the way up to this area up here at 11866. So there is a long trade here for sterling against the euro as well.

I'd want to get these interest rate meetings out of the way this week before taking any further positions on sterling against the euro, or indeed sterling against the dollar.

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
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 04/12/23 14:42
  • Posts

    • As a DeFi and Web3 enthusiast, I find projects like Rootstock Infrastructure Framework (RIF) to be incredibly promising and exciting for the future of decentralized finance. The idea of providing an infrastructure framework on top of the Rootstock blockchain, along with open and decentralized tools, is a step towards making DeFi more accessible and scalable. The RIF token, serving as the native token of the ecosystem, plays a crucial role in facilitating the consumption of RIF products and services. This utility aspect adds intrinsic value to the token and aligns with the broader trend of utility tokens in the crypto space. The fact that RIF is listed on major exchanges such as Bitget, Mexc, Binance, and Gateio enhances its liquidity and accessibility for a broader audience. This, coupled with the ability for RIF token holders to participate in a growing network of decentralized applications (dApps) and products, fosters a sense of community and active engagement I would love to hear from other RIF token holders about their thoughts on the project. What aspects of RIF are you most excited about?
    • If you ever need advice or assistance in navigating the complexities of the mortgage market, I usually consult with Mortgage Broker Chelmsford for all my financial matters. They've been a great resource for me, and I highly recommend reaching out to experts like them for guidance.Let's hope the extension of the scheme provides some relief to first-time buyers and helps stimulate the housing market.
    • Going by what i see on the weekly TF, BTC is heading to $46-48k major price zone level. If it breaks and holds above this zone, then $51-52k is the next minor zone, since its a minor zone, BTC might rally at this zone before deciding to go all the way up or coming back down. Though, I am still mindful of the bearish flag pattern, so there is tendency that BTC could start dumping from any of this zones yah. Lets see how it plays out yah.
  • Create New...