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 Slightly Bearish on Dxy’s Rise
    Forex Forex Forecasts

    GBP/USD Forecast: Sentiment Remains Slightly Bearish on Dxy’s Rise

    October 12, 20213 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit
    GBP_USD Forecast
    Share
    Facebook Twitter LinkedIn Pinterest Reddit

    On Tuesday, October 12, the cable began the Asian session on low, bounced a bit but now drops below the 1.3600-mark. 

    • The US Dollar Index is holding steady around 94.30, up 0.06 percent so far.
    • In August, the unemployment rate in the United Kingdom fell to 4.5%.
    • The Bank of England’s inflation stance, as well as Brexit fears, pushed sterling down versus the US dollar.

    GBP/USD fundamental forecast

    On Tuesday, the GBP/USD continues to fall. In the previous session, the pair reached a high of 1.3674 but failed to maintain the momentum. GBP/USD is trading at 1.3591 at the time of writing, down 0.03 % on the day.

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

    UK’s August figures

    The official unemployment rate in the United Kingdom was 4.5% in August, compared to 4.6% in July and 4.5% predicted, but the claimant count changes slightly reduced from the previous month.

    In September, the number of persons seeking unemployment benefits fell by 51.1K from the previous month -58.6K. The claimant count rate was 5.2%, down from 5.4 percent the previous year.

    In August, the UK’s average weekly earnings, excluding bonuses, were 6 percent 3Mo/YoY, compared to +6.8% last month and +5.9% predicted, while the gauge including bonuses was 7.2 percent 3Mo/YoY, compared to +8.3% last month and +7.0%expected.

    Pound struggles continue

    Fears of inflation and interest rate increase expectations continue to weigh on the British pound. As a result, the Bank of England (BOE) and members of the Monetary Policy Committee (MPC) stated that last year’s interest rate cuts might be reversed at any time soon, though not before the early months of 2022, to mitigate the danger of inflation surpassing the BOE’s benchmark of 2%.

    Brexit jitters  

    In addition, as discussions between Britain and the European Union (EU) continue this week, the UK Brexit Minister stated that modifications to the protocol dealing with Northern Ireland would be necessary. 

    The EU has already stated that it would not renegotiate the deal, escalating tensions between the two countries.

    DXY touching highs 

    DXY is now trading at 94.30, which is its highest level since September 2020. Greater inflationary concerns about rising energy costs, as well as predictions for Fed tapering as soon as November, keep investors engaged in the greenback.

    Key data releases from Britain

    GBP’s important data release was today on the calendar front, so there isn’t much that can impact the currency moving forward. 

    Key data releases from the US

    Inflation data and Consumer Price Index will be at the center of attention for traders and investors. 

    What’s next? 

    As the DXY strengthens and GBP is struggling, investors will notice a short to a medium-term bearish trend. 

    GBP/USD technical analysis: key levels in action  

    After today’s claimant change release, GBP/USD did bounce back, remaining above the 1.3600 level. However, it was a short-lived momentum, as the pair fell and is now trading below 1.3600. 

    The pair is well above its 100-day moving average on the daily chart, and the MACD is below the neutral level. The pair’s support lies around 1.3562. If it breaches this level, it can further deteriorate towards the 1.3520 level. 

    GBP/USD chart
    GBP/USD chart

    On the other hand, if the pair’s next resistance lies around 1.3650. If the pair manages to cross this level, the next potential target will be 1.3700. 

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

    9  +  1  =  

    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.