GBP Might Strengthen as GDP Posts Positive

GBP Might Strengthen as GDP Posts Positive

2023-02-13 • Updated

On Friday 10th February 2023, the Office for National Statistics published the figures for the Gross Domestic Product (GDP) as 0.1% which turned out greater than the initial forecast of -0.2%. As a result of the positive outlook of this report, we need to examine the short-term impact on GBP pairs from a technical point of view.

GBPUSD

GBPUSDDaily-1002.png

GBPUSD is currently reacting from the confluence of the trendline support, the 200-Day moving average, and the 88% Fibonacci level. Also, since the 50-Day moving average already crossed above the 100 and 200-period averages, there's a huge chance we get to experience some bullish price action all the way to 1.24854 or higher.

Analysts’ Expectations: 

Direction: Bullish

Target: 1.24854

Invalidation: 1.19492

GBPCAD

GBPCADH4-1002b.png

Despite being in a downtrend, GBPCAD can be seen to have broken above two previous highs. This indicates the possibility of a bullish reaction from the highlighted drop-base-rally demand zone. I personally expect a typical case of a buy-to-sell movement to come into play in this scenario.

Analysts’ Expectations: 

Direction: Bullish

Target: 1.63470

Invalidation: 1.60654

GBPJPY

GBPJPYDaily-1002.png

GBPJPY has recently created a wedge pattern, and within this wedge the most recent price action has been a bullish reaction from the trendline support, leaving us with the option of a bearish rejection from the rally-base-drop supply zone. The 50-Day moving average acts as an additional confluence to validate our prediction.

Analysts’ Expectations: 

Direction: Bearish

Target: 156.21

Invalidation: 161.908

GBPAUD

GBPAUDH4-1002.png

GBPAUD is currently reacting from an area of supply. The 100-period moving average and the trendline resistance are an added confluence for the bearish price action since price is currently constricted within a wedge pattern.

Analysts’ Expectations: 

Direction: Bearish

Target: 1.73278

Invalidation: 1.75482

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

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