The FX PostThe FX Post
    What's Hot

    FlatQube Trade Volume, Trade Pairs & Trust Score

    November 7, 2022

    Step Guide to Winning Forex Trading

    September 19, 2022

    Relationship Between Currency Risk and Foreign Bonds

    September 2, 2022
    The FX Post The FX Post
    • Best Fx Robots
    • Forex
      • News
      • Forex 101
      • Forex Forecasts
      • Broker Reviews
    • Crypto
      • News
      • Crypto 101
      • Crypto Forecasts
      • Crypto Reviews
    • Indices
      • News
      • Analysis
      • Commodities
      • Reviews
    • Automated Trading
      • Forex Signals
      • Forex Robots
      • Copy Trading
    • Top
      • Best Forex Robots
    The FX PostThe FX Post
    Home ยป GBP/USD Forecast: Sentiment Remains Neutral, Investors Eyeing Important News
    Forex Forex Forecasts

    GBP/USD Forecast: Sentiment Remains Neutral, Investors Eyeing Important News

    October 26, 20213 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit
    GBPUSD
    Share
    Facebook Twitter LinkedIn Pinterest Reddit

    On Tuesday, October 26, the cable is trading higher from its previous day, but the overall market remains neutral.  

    • GBP/USD struggles to find a clear direction and fails to build on Monday’s gains.
    • London is buzzing with Brexit talks, second-tier US data is being sought to boost, and US Q3 GDP will be the deciding factor.
    • Frost, the UK’s Brexit Minister, believes the EU’s Northern Ireland plan is insufficient and sets a December deadline for resolving the dispute.

    GBP/USD fundamental forecast

    GBP/USD is trading in a tight range around 1.3765 ahead of Tuesday’s London start. As a result, the cable pair’s previous day’s positive performance, the first in three days, fades amid a cautious atmosphere ahead of the UK’s crucial Brexit discussions.

    Markets are invaded by algorithms
    Secure your passive income with algo-based trading systems
    Learn more

    Brexit chatters in London

    On Monday, UK Brexit Minister David Frost expressed his displeasure with the recent Brexit discussions and the European Union’s (EU) new approach for resolving the Northern Ireland (NI) border concerns before a parliamentary committee.

    Virus surge 

    Fears about speedier viral mutations in the UK and the recent increase in Covid-19 cases are weighing on the GBP/USD exchange rate. For the past four days, the UK has seen around 40,000 new cases every day. 

    As the country enters the winter season, the UK health minister has cautioned people not to loosen their guard since there might be 100,000 COVID cases each day.

    DXY going strong

    The disappointing US Treasury rates are being probed by upbeat sentiment, but the US Dollar Index (DXY) stays robust, extending the previous day’s comeback from the monthly low. The cause for the Fed taper tantrums might be tied to hawkish Fedspeak and anticipation of stronger US Q3 GDP data.

    In the midst of these maneuvers, US 10-year Treasury rates hover around 1.64 percent following a two-day decline, while stock futures post modest gains to re-establish record highs.

    Hawkish comments 

    Huw Pill, the Bank of England’s new chief economist, indicated last week that the MPC is “finely balanced” on raising rates in November. Still, his views were seen as hawkish because he also predicted that inflation in the UK might surge beyond 5% by early next year. 

    This has bolstered the Pound’s underlying strength while also increasing the risk of disappointment for bulls.

    Key data releases from Britain

    On the calendar front, GBP’s important data is the Annual budget release tomorrow. 

    Key data releases from the US

    From the US, we have Advance GDP on Thursday and Treasury report on Friday. 

    What’s next? 

    Looking ahead, a delegation of EU officials is expected to arrive in London on Tuesday, heightening the importance of Brexit stories for GBP/USD traders.

    Given the lower chance of a favorable conclusion, the cable pair may stay under pressure, with second-tier US data such as Consumer Confidence and housing reports providing new impetus.

    GBP/USD technical analysis: upside remains limited  

    The pair is slightly below its 100-day moving average on the daily chart, and the MACD is pointing upwards. 

    GBP/USD is stable at around 1.3776, just below the 100-day moving average; we are worried that this will continue to contain the upside and are wary of a collapse here.

    The support level is 1.3720, followed by 1.3569, the low from October 12. If it succeeds in crossing this level, the next one is around 1.3411.

    GBP/USD chart
    GBP/USD chart

    Further gains to 1.3914 (mid-September high) could be possible if the 100-DMA is broken, and the cable must reclaim this barrier to maintain its upward momentum.

    Markets are invaded by algorithms
    Secure your passive income with algo-based trading systems
    Learn more
    Forecast GBP/USD Forecast
    Share. Facebook Twitter Pinterest LinkedIn Reddit

    Related Posts

    JPMorgan Chase & Co

    JPMorgan Strategists See Equity Stress Relieving in Second Fifty Percent

    June 21, 2022
    US Fed Hikes Benchmark Interest Rate

    US Fed Hikes Benchmark Interest Rate by 0.75% to 1.75%, Highest Level since March 2020

    June 16, 2022
    European Shares

    European Shares Edged Up Before Fed Rate Hike as ECB Explores Crisis Strategy

    June 15, 2022
    US Inflation Jumps

    US Inflation Jumps to Hit Fresh 40-Year Record-High of 8.6%

    June 10, 2022
    Add A Comment

    Leave A Reply Cancel Reply

    26  −    =  17

    Best FX Post
    Best Forex Robots (Expert Advisors) 2021

    Best Forex Robots (Expert Advisors) 2022: Passive Income From Algo Trading Systems

    July 7, 2021

    Top 10 Lending Platforms for Crypto Loans

    June 1, 2022
    forex eurusd trading charts

    Top 10 Best Forex Brokers In All Times

    June 1, 2022
    Recent Posts
    • FlatQube Trade Volume, Trade Pairs & Trust Score
    • Step Guide to Winning Forex Trading
    • Relationship Between Currency Risk and Foreign Bonds
    • Best Social & Copy Trading Platforms
    • Bitcoin Dips Listed Below $20,000 With Fundstrat Considering ‘Last Washout’
    Featured Reviews
    TechBerry

    TechBerry Review: Pros, Cons, Recommendations

    September 18, 2021
    CryptoHero

    CryptoHero Review: Pros, Cons, Recommendations

    June 3, 2022
    Bitsgap

    Bitsgap Review: Pros, Cons, Recommendations

    April 29, 2022
    Categories
    • Analysis
    • Automated Trading
    • Best FX Post
    • Broker Reviews
    • Commodities
    • Copy Trading
    • Crypto
    • Crypto 101
    • Crypto Bots
    • Crypto Forecasts
    • Crypto Reviews
    • Forex
    • Forex 101
    • Forex Forecasts
    • Forex Robots
    • Forex Signals
    • Guides
    • Indices
    • News
    • News
    • News
    • Reviews
    • Reviews
    • Uncategorized
    Twitter BlogLovin
    © 2023, Thefxpost.com.
    • Contact

    Type above and press Enter to search. Press Esc to cancel.