GBP/USD Value, Chart, and Evaluation
- Combined UK Q3 GDP information lends Sterling a small bid.
- Market liquidity continues to skinny forward of the vacation interval.
The UK economic system grew by 1.1% between July and September this 12 months, lacking prior forecasts of 1.3% development. The annualized charge nevertheless beta prior forecasts – 6.8% in comparison with 6.6% – as a consequence of an upward revision within the 2020 numbers. The most recent information reveals the UK economic system is now 1.5% under the place it was pre-coronavirus at This fall 2019, revised from the earlier estimate of two.1% under. A combined to a barely optimistic set of numbers though the results of the present Omicron variant won’t be seen till This fall information is launched.
Hold updated with all market-moving information releases and occasions through the use of the DailyFX Calendar
The most recent UK Omicron information present the covid-variant spreading at a speedy tempo with over 615k individuals testing optimistic within the final seven days. On a barely extra optimistic observe, sufferers admitted to hospital are beginning to flatline and stay nicely under ranges seen in earlier covid-19 outbreaks. The quantity of people that have obtained a 3rd vaccination continues to climb with slightly below 900k doses administered within the newest information launch.
GBP/USD is buying and selling barely greater in early European turnover with the pair at present round 1.3285. Cable has been constructing a base of the 1.3160 space within the final two weeks and this stage appears prone to stay supportive within the brief time period. The US greenback stays agency and appears set to maneuver greater over the approaching weeks and months, limiting the pair’s upside, with short-term resistance seen round 1.3350-1.3380. A confirmed break greater brings 1.3515 into play.
GBP/USD Day by day Value Chart – December 22, 2021
Retail dealer information present 74.61% of merchants are net-long with the ratio of merchants lengthy to brief at 2.94 to 1. The variety of merchants net-long is 6.16% decrease than yesterday and 0.61% decrease from final week, whereas the variety of merchants net-short is 17.35% greater than yesterday and 9.74% decrease from final week.
We sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests GBP/USD costs might proceed to fall.Positioning is much less net-long than yesterday however extra net-long from final week. The mix of present sentiment and up to date adjustments offers us an extra combined GBP/USD buying and selling bias.
What’s your view on GBP/USD – bullish or bearish?? You may tell us by way of the shape on the finish of this piece or you may contact the writer by way of Twitter @nickcawley1.