Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Can GBP/USD keep momentum throughout the recovery?

The British Pound (GBP) has been on a solid uptrend movement for two consecutive weeks now after hitting an all-time low at $1.21555 on May 13th, 2022, the lowest price in two years. The market seemed to find strong support in this region; hence the bulls resurfaced, pushing the price to $1.26650 before a short retracement. The price is currently at $1.25340 during the Asian session today.

What is the next move for GBPUSD?

GBPUSD is currently in a consolidation phase after the price failed to break above the 200-EMA level at 1.26010. A sharp price rejection brought the price down to 1.24680 before rising again. However, the bulls need to break above this strong resistance to turn the pair bullish again. Once achieved, we might expect to see a smooth landing to the next resistance at 1.30700.

On the other hand, the pair has formed one-month-old support at 1.24580. As long as this support is not defeated, we might expect the pair to keep rising from the current position. Alternatively, if this support fails, we might see a retest of 1.23284.

What are the factors influencing the GBPUSD?

The strong performance of the US dollar for the past two weeks has primarily discredited the British Pound. However, traders who wish to trade this pair effectively should always pay great attention to the following six fundamental factors:

  • Interest rate hikes
  • Monetary policy
  • Inflation
  • Market confidence and sentiment
  • Balance of trade
  • Economic growth through GDP

Are there other factors to affect the GBPUSD from the Economic calendar today?

The first factor to influence pounds from the economic calendar today is the speech delivered by the Monetary Policy Committee (MPC) member - Silvana Tenreyro today at 4:15 pm GMT. This will give investors further insight into the plan of the body to curb increasing inflations.

Other factors to influence the GBPUSD are data from the US zone, which includes:

  • US Core durable goods orders
  • Speech from FOMC member Brainard
  • Minutes from the FOMC
Last Updated: 25/05/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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