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GBP's Technimentals

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Technical analysis of GBP is favoring bearish moves in future with chances of small bounce back from support zone of 1.5440 to 1.5390. Resistance zone is currently at 1.5875 to 1.5834.

 

GBP set a new 7-month low in past week after speech from BOE's governor. Unpexcted results of retail sales pulled GBP downwards on the last day of trading week. Expected percentage was 0.5% and the result, with the difference of 1.1%, was -0.6%. But this bad percentage was mainly due to bad weather situation in UK. At this time GBP's growth is under pressure due to unsupportive figures. At this time, BOE's attention is more towards growth and less towards targeting inflation.

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The British pound will face continued pressure in the coming weeks as confidence erodes in the United Kingdom’s recovery efforts. U.K. economic growth will remain “sluggish” over the next few years compared with past recoveries in the 70s, 80s, and 90s.

 

chart

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GBP is currently trading at about 32-month low. At this time pressure is increasing especially after the credit rating of UK is downgraded from AAA. A weaker support level is waiting at 1.4905 and a further break would take it to 1.4850.

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GBP showed nothing special today. GDP data from UK was as estimated before release. technical analysis show bullish movement in short term. Technically Longterm trend is unclear so far.

 

 

I got very useful information about GBP at ForexBenz

 

Actually, I am fresh trader, I often get the vibes that automated software are good money making machine. Please give me advice can I rely it?

 

Thanks

 

Forexbenz??? Heard it first time.

1.png.0c096485cda0ff6a22f76baabc42e1b1.png

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Another missile hit GBP today. Concerns over UK economic growth have increases after weak economic reports. PMI data declined to an unexpected level of 47.9 from 50.8.

 

So the result of above can clearly be seen in GBP/USD pair which went down to 2.5 years low. GBP was already under pressure due to changing in AAA rating last week.

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44 pips growth so far in gbp/usd. If I remember correctly, I was expecting bearish trend. Even though UK construction data was weak and GBP faced sudden loss but found support and till now it is rising like a tortoise (cant be the winner though). This upside move is for very limited time and GBP will have to go down.

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There is an overall weak sentiment about the pound and tomorrow is going to be a big day with the UK bank rate announcement. Nonetheless, there isn't going to be a change and the rate will stay at 0.50% and even the Asset Purchase Facility (APF) will stay the same at 375B.

 

Any changes will obviously affect the trajectory of the GBP and the FTSE 100.

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There is an overall weak sentiment about the pound and tomorrow is going to be a big day with the UK bank rate announcement. Nonetheless, there isn't going to be a change and the rate will stay at 0.50% and even the Asset Purchase Facility (APF) will stay the same at 375B.

 

Any changes will obviously affect the trajectory of the GBP and the FTSE 100.

 

Would you know when a "Statement" or "minute's"will be issued for the reasons there was no change, change, etc.

 

Sometimes the board sentiment can be a bigger mover than a No Change announcement.

.

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GBP/USD went down by 74 pips so far and decline continues. Yesterday's bullish trend for very short time as expected. GBP has already broken the first support level of 1.5075 and now heading towards next support zone of 1.4980 to 1.4990.

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Eyes will be on budget which is due to be presented this week. GBP has been continuously under pressure after change in credit rating. So any bad report from govt will aid the decline of GBP.

Technically, support is seen at 1.4975-1.4980.

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GBP has gained some strength over past few days. Fundamentals r in favor of GBP and it looks like pressure is easing. After Fed decided to keep monetary policy loose, gbp gained more strength against usd.

 

Technically, trend is not clear. For long term traders, support zone is around 1.4650 to 1.4660 and resistance zone is around 1.5290 to 1.5300.

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GBP/USD broke 1.5200 on thursday and then gained significant strength on the last trading day of this week. This could be a signal of strengthening GBP. Fundamentals played an important part to support gbp and take it out of consolidation. Retails Sales were much better than expected. Next week will also be dependent on economic reports and we can see significant rise incase of better fundamentals from UK.

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UK government is considering to ease monetry policy and has set inflation target of 2%. Just 0.7% GDP growth is expected this year.

Gbp/Usd settled lower last week, as expected. Next week, it is likely to touch support level of 1.5100 and then further decline will take it to 1.5000. Cannot see any good upcoming fundamentals from UK. Technically it is bearish so next week will most probably be another bearish week for this pair.

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Today gbp remained steady against its counterparts.

UK construction data improved a little but remained lower than expected which had a little affect on gbp/usd. But bad u.s data changed trend to short term bullish trend.

1.png.babd31c36e5251ceb59fb6e6617cb705.png

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BOE decided not to expand its asset purchase program. BOE will keep rates at 0.5%. This news supported GBP to offset its previous losses and gbp/usd went to 6 week high.

Above news has developed a sentiment among investors that GBP economy has enough power to avoid recession.

1.png.a72c81fad60cdc1a21296456f1fe9a56.png

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Weekly performance of gbp remained mixed against usd. Pair remained bearish in first 3 days and then, due to usd's bad data, pair managed to offset weekly losses. Overall trend remained bearish and we can expect significant downward moves in the coming week. Weekly support zone is seen at 1.5020 to 1.5230.

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This pair took full advantage of usd's weak performance in current week. Pair bounced back from weekly support zone and crossed 1.5400 level but since then it is trading bearish. Major resistance levels are not broken this week due to initial losses faced by this pair.

Short term trend is strongly bearish and technical indicators showing support at 1.5310 and then at 1.5240.

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As most rivals of usd, gbp also lost more than 0.75% today to usd. This loss is mainly caused by weaker than expected uk jobs data. Another important factor was BOE minutes.

 

Hourly chart shows breach of major support. This breach has opened doors to more bearish moves. But I would wait to see a little more pips downwards. As shown in image, technically, support level is already breached and we can enter for a short gbp/usd.

1.png.bf64869024ff5fc0ec77369016ab5e2e.png

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GBP/usd is expected to show some decline in the start of week. As shown in the image, major support is expected near 1.5030 level. Strong downwardish moves by gbp/usd r indicating a dive towards this level.

It took 6 "5hrs" candles to reach a weekly high but just 2 candles to offset all the gain. then it took around 9 candles to go near week-high but again it took 2 canldes. Bearish moves r very strong and so is the impact of weak fundamental data from U.K.

1.png.00ab837ece1309dc2fa81915a51e8ae2.png

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Slightly upward trendy but sentiments r bearish due to strong technical support. Today's weak bullish trend was due to weak u.s data. I dun think fundamentals will have any high impact on this pair and it will, most probably, go down to the support level (image in previous post).

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BBA approvals came as expected and stregthened gbp. CBI distributive trade survey came weaker than expected but had a little affect on gbp.

GBP remained slightly stronger vs usd today. But end of the day seems to offset the small gains and gbp/usd may enter into negative territory.

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U.Ks better than expected estimated GDP strengthened it against rivals. Even U.S data for jobless claims had no affect on gbp/usd. This pair has gained 171 pips so far. It has been highest point since 19-feb.

 

GBP has already made significant gains in this week and tomorrow will most probably be slightly bearish for this pair.

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GBP showed mixed moves today. It rose sharply against usd but weakened against eur.

 

gbp/usd found support at 1.5470 (expected was near 1.5415) and touched the highest point (1.5566) since 14th-feb. Tomorrow's release from Federal reserve will have high impact on usd so I am currently on hold for any usd-pair.

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GBP took full advantage of weak usd and rose sharply. Fed policy ahead has limited these gains and investors r eagerly waiting for FOMC. Technically this pair has already crossed 1.5509 resistance level and is heading towards 1.5800.

 

GBP showed very insignificant change against eur today. At this time, change is around -0.06%.

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