GBPUSD MARKET UPDATE :GBP/USD piercing channel lows whilst at lowest level since 1985, just above mid-1.1300s.

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TODAY GBPUSD SIGNAL

GBPUSD MARKET UPDATE 

GBP/USD piercing channel lows whilst at lowest level since 1985, just above mid-1.1300s

  • GBP/USD meets with a fresh supply on Monday and is pressured by resurgent USD demand.
  • The UK’s bleak economic outlook undermines the GBP and contributes to the intraday slide.
  • Investors now look to the FOMC and the BoE policy meetings for a fresh directional impetus.

GBPUSD MARKET UPDATE :The GBPUSD pair comes under some renewed selling pressure on Monday and extends its steady intraday descent through the first half of the European session. The pair is currently placed around the 1.1360 area, just a few pips above its lowest level since 1985 touched on Friday. It is now breaking just below the baseline of its falling price channel, the which it has been step-declinging within all year. If it closes or opens below the channel on a daily basis, it will be a bearish sign, possible signalling an acceleration of the downtrend – perhaps in a kind of bearish finale, or final blow off move. 

A bleak outlook for the UK economy continues to undermine the British pound and is one of the main factors exerting a downward pressure on the GBP/USD pair. The UK Office for National Statistics reported on Friday that monthly Retail Sales recorded the biggest fall since December 2021 and fell much more than expected in August. This is seen as another sign that the economy is sliding into recession.

GBPUSD MARKET UPDATE :Apart from this, resurgent US dollar demand is another factor contributing to the offered tone surrounding the GBP/USD. The stronger US CPI report released last week bolstered expectations that the Fed will tighten its monetary policy at a faster pace. In fact, the markets have been pricing in at least a 75 bps rate hike and a small chance of a full 100 bps lift-off at this week’s FOMC meeting starting Tuesday, which is likely to be a key event for cable.

The prevalent risk-off environment provides an additional lift to the safe-haven buck. The market sentiment remains fragile amid worries that rapidly rising borrowing costs, along with headwinds stemming from China’s zero-covid policy and the protracted Russia-Ukraine war, would lead to a deeper global economic downturn. This, along with the worsening US-China relationship, tempers investors’ appetite for riskier assetsConfuse Which Broker is best ? , Here you can find the best regulated broker

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