GBP / USD trading offer likely to return to 1,600
The pound/dollar pair tried to return on Monday amid concerns about the Boris Johnson administration. The pair is also stable ahead of key British economic data scheduled for later this week. It is currently trading in the area of 1.36642, which is slightly higher than the lowest level last Friday.
Key economic data
The GBP / USD pair has been in trouble over the past few days due to political concerns. Investors are worried about a leadership crisis after Boris Johnson was accused of violating the Covid-19 rules in December 2020.
While the prime minister sent a message of apology to the queen last week, many in her party believe she will not end her current term. As a result, there are concerns about political challenges in the country.
These challenges come at a time when Britain is on the verge of starting negotiations with the European Union. These talks are about the growing crisis in Northern Ireland. Britain wants to resolve the crisis and has warned that it can activate Article 16 if it does not do so.
Meanwhile, investors are preparing for a busy week in which the Office for National Statistics (ONS) will release the latest employment, inflation, and retail statistics.
ONS will release the latest job numbers on Tuesday. Economists expect the data to show that Britain's unemployment rate remained stable at 4.2 percent in November as it struggled with the new Covid-19 crisis. They also expect the data to show that the economy created more than 128,000 jobs in the three months to November.
In addition, analysts expect the data to show that the country's inflation rose from 5.1 percent in November to 5.2 percent in December. This figure will be larger than the BOE 2.0 target. Therefore, analysts expect the bank to behave extremely in the coming weeks.
GBP / USD forecast
The Federal Reserve's strong divergent policies towards the Bank of England are fundamentally downsizing the pair. And what the Majua Zyox Terminal also shows is exactly the downward trend. Also, the net positions on the sterling currency are negative and positive for the US dollar. So in general, what is considered for this currency pair in the medium term is a downtrend. The four-hour chart also shows that the GBP / USD pair has been on a strong uptrend over the past few weeks, but we are currently facing a reversal.
The pair also moved above the 50-day moving average. Also, it is slightly lower than the 25-day moving average while the RSI is approaching the buy saturation range. Therefore, the pair is likely to resume a downtrend as sellers target support prices in the 1.358 area.
The pound/dollar pair tried to return on Monday amid concerns about the Boris Johnson administration. The pair is also stable ahead of key British economic data scheduled for later this week. It is currently trading in the area of 1.36642, which is slightly higher than the lowest level last Friday.
Key economic data
The GBP / USD pair has been in trouble over the past few days due to political concerns. Investors are worried about a leadership crisis after Boris Johnson was accused of violating the Covid-19 rules in December 2020.
While the prime minister sent a message of apology to the queen last week, many in her party believe she will not end her current term. As a result, there are concerns about political challenges in the country.
These challenges come at a time when Britain is on the verge of starting negotiations with the European Union. These talks are about the growing crisis in Northern Ireland. Britain wants to resolve the crisis and has warned that it can activate Article 16 if it does not do so.
Meanwhile, investors are preparing for a busy week in which the Office for National Statistics (ONS) will release the latest employment, inflation, and retail statistics.
ONS will release the latest job numbers on Tuesday. Economists expect the data to show that Britain's unemployment rate remained stable at 4.2 percent in November as it struggled with the new Covid-19 crisis. They also expect the data to show that the economy created more than 128,000 jobs in the three months to November.
In addition, analysts expect the data to show that the country's inflation rose from 5.1 percent in November to 5.2 percent in December. This figure will be larger than the BOE 2.0 target. Therefore, analysts expect the bank to behave extremely in the coming weeks.
GBP / USD forecast
The Federal Reserve's strong divergent policies towards the Bank of England are fundamentally downsizing the pair. And what the Majua Zyox Terminal also shows is exactly the downward trend. Also, the net positions on the sterling currency are negative and positive for the US dollar. So in general, what is considered for this currency pair in the medium term is a downtrend. The four-hour chart also shows that the GBP / USD pair has been on a strong uptrend over the past few weeks, but we are currently facing a reversal.
The pair also moved above the 50-day moving average. Also, it is slightly lower than the 25-day moving average while the RSI is approaching the buy saturation range. Therefore, the pair is likely to resume a downtrend as sellers target support prices in the 1.358 area.