GBPUSD Breakout Set to Be Tested by Economic Data

GBPUSD is testing the recent breakout of the 1.25 level on a weekly basis after a week of important UK data.

GBPUSD – Weekly Chart

The price of GBPUSD trades at 1.2510 and a continuation of the uptrend would target 1.30 and above versus the US dollar.

The Bank of England raised interest rates again on Thursday in a widely expected move with a 25 basis point hike from 4.25% to 4.5%. The European and US central banks both hiked rates over the last week and the UK was predicted to follow. Inflation has been more stubborn in the UK and is up near the 10% level.

Further data on Thursday from the US showed producer prices rising less than expected in another sign the UK is worse off on inflation. The US dollar has been under some pressure, which may continue in the coming weeks if the country’s debt ceiling agreement is not fixed.

GBPUSD Forecast

The bigger data from the UK was on Friday with GDP for the three months to the end of April being released. A year-on-year number of 0.2% growth came in as expected, down from 0.6% previously. However, analysts are expecting the UK to escape a recession in the coming year.

Meanwhile, there are fears for the housing market with UK house prices rising only 0.1% in April, for the smallest increase since December 2012. There were also concerns from the private sector as profit warnings from construction firms and a gloomy outlook from the online estate agent Purplebricks, led to sharp falls in their share prices.

A day before its annual investor meeting, Marshalls, which produces landscaping, building and roofing products, warned that sales had fallen by 14% year on year to £227m in the four months to 30 April.

Despite some economic gloom, the pound can still look for support at the 1.25 breakout level and move higher after another rate hike and some US debt ceiling fears.

Recent News
Start Trading Now !

Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.

Popular posts

ATFX

The Firm has taken the decision to cease providing services to retail clients, with immediate effect. We are therefore unable to accept any applications.

Services to professional clients will not be impacted. For professional applications please contact [email protected]

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-au/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-za/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://atfxconnect.com