GBP/USD: the main pair of the day

GBP/USD: the main pair of the day

2020-06-19 • Updated

Investors are confused as both negative and positive factors weigh on GBP. Which side will win?

Let’s get it sorted out. We can notice on the GBP/USD chart that the price is stuck near 1.24. Most traders can’t choose the team: bears or bulls.

What's happening now?

On the bearish side, the Bank of England boosted the bond-buying program by only 100 billion pounds – much less than everybody expected. Most economists criticized it as the country hasn’t yet recovered and needs more support. Also, concerns about the second coronavirus wave weigh a lot on the sentiment-sensitive pound. New cases in Beijing, Texas and Florida have just fueled that worries.

On the bullish side, actual UK retail sales turned out better than the forecasts. Sales rose by 12% – twice more than analysts anticipated. That basically means that the British economy has started recovering. That is great, but most investors shrugged off that news.

What upcoming events may move GBP?

The UK manufacturing PMI will be released on June 23 at 11:30 MT time. If numbers come better than expected, the British pound will gain.

Brexit trade talks will have a huge impact on GBP. There are optimistic prospects that the EU and the UK can reach a deal even before the agreed deadline, that is scheduled for the end of this year. The UK Prime Minister Boris Johnson really wants to end talks as soon as possible. GBP will definitely benefit, if this happens.

Technical tips

 The GBP/USD pair has just broken the support line at the 50-day moving average at 1.2400. That gave a fresh stimulus to sellers. We can assume that the price may fall to 1.2300, when it will meet the barrier. The next strong support will be at the one-month low at 1.2100. Keep an eye on the resistance at 1.2500. The move above it will push the price upward to 1.2680.

GBPUSDDaily.png

LOG IN

Similar

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

XBRUSD: Prepares to Correct Intraday Rally
XBRUSD: Prepares to Correct Intraday Rally

Bearish Scenario: Sales below 80.00 with TP1: 79.34, TP2: 78.94, TP3: 78.55, and 78.00 Bullish Scenario: Buys above 78.00 (wait for a retracement to the zone) with TP: 79.34 TP2: 80.00, and TP3: 81.00

Latest news

Nasdaq, S&P 500 Reach Record Highs
Nasdaq, S&P 500 Reach Record Highs

After creating record highs, Wall Street's main indexes opened on Wednesday and began to edge lower, reflecting cautious sentiment among investors. They're eagerly awaiting crucial inflation data that could impact the U.S. Federal Reserve's interest rate decisions. The upcoming release of the personal consumption expenditures (PCE) price index is expected...

What To Trade In March
What To Trade In March

The month of February saw markets make several instinctive moves as well as create opportunities for proper leveraging of fundamental releases. Despite being a leap-year, there wasn’t any real impact on price delivery in the course of the month. As we await the opportunities that lie ahead in the month of March, here are a few thoughts to consider.

CHF: Key Zone Could Yield Strong Reactions
CHF: Key Zone Could Yield Strong Reactions

USD/CHF saw a rebound after declining for two days straight, climbing towards the important psychological level of 0.8800 during Wednesday's early Asian trading session. There's some pressure on the Swiss Franc (CHF) as traders await the Swiss ZEW Survey – Expectations report scheduled for later today. Moreover, investors are keeping...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera