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.

GBP/USD

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.

GBP/EUR

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
      21,230
    • Total Posts
      90,821
    • Total Members
      41,334
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Jimbo719
    Joined 02/02/23 21:34
  • Posts

    • US stock market is currently showing a bullish trend with several companies, such as Apple (AAPL), Tesla (TSLA), Amazon (AMZN), Nvidia (NVDA), Microsoft (MSFT) being very bullish. Stock Market: SP500, Apple (AAPL),Tesla (TSLA), Amazon (AMZN), Nvidia (NVDA), Microsoft MSFT, Berkshire Hathaway (BRK/B), Block, Inc (SQ), Meta Platforms, Netflix (NFLX), Enphase (ENPH), Alphabet GOOGL. XFL Finance Sector ETF, JPMorgan JPM & Bank of America BAC, Goldman Sachs Group Inc (GS) Stock Market Summary Earnings for large tech stock creates Elliott wave three's  Elliott Wave Analysis: Lows in for the stock market as the market Impulses higher Trading Strategies:Continue to hold Long Trades Video Chapters 00:00 SP500 / RUT 07:00 Apple (AAPL) 13:30 Amazon (AMZN) 16:15 NVIDIA (NVDA) 19:38 Meta Platforms (META) 20:23 Netflix (NFLX)  23:23 Enphase (ENPH) 28:28 Tesla (TSLA) 30:52 Alphabet (GOOGL)  33:02 Microsoft (MSFT) 36:49 Berkshire Hathaway (BRK.B) 38:40 Block Inc. (SQ)  42:59 Bank of America BAC 48:31 TRIAL Buy 1 Month Get 3 Months  Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge com  
    • Look Ahead to 03/02/23: US jobs; Caixin; US ISM non-manufacturing PMI; SASY earnings After the Fed, ECB and the Bank of England all raised interest rates, traders turn their attention to the keenly watched US jobs report. We’ll get live coverage and reaction to the NFPs from IG’s Angeline Ong and Joshua Mahony. Plus, look out for ISM non-manufacturing PMI data for more hints on the health of the US economy, and earnings from French healthcare company Sanofi (SASY).   Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Thursday 02 February 2023        
    • Special Coverage of the European Central Bank Interest Rate Decision.  
×
×
  • Create New...