- The GBP/USD broke a winning streak on Thursday, falling back to 1,3500.
- Despite a bullish general inclination, the cable is prepared for a new challenge of key technical levels.
- The figures of the United Kingdom (UK) PMI did not meet expectations on Thursday, but on Friday it will be another opportunity for redemption of data from the United Kingdom.
The GBP/USD ruined a three -day winning streak on Thursday, falling apart from the 1,3600 zone and going back to 1,3500. The data managers index data (PMI) of both the United Kingdom (UK) and the United States (US) divided the markets in half, with the figures of the US services PMIs exceeding the expectations and numbers of the PMI of the United Kingdom of June remaining below below.
Upon entering the last negotiation session of the week, cable operators are at a disadvantage, but with a last chance of a data -driven rebound, assuming that the economic figures of the United Kingdom behave. Retail sales from the United Kingdom are expected to recover to 1.2% monthly after the strong fall of -2.7% in May.
The orders of the US durable goods for June are also on Friday’s agenda. Analysts prepare for strong contraction in monthly lasting goods, with medium market forecasts that foresee a decrease in -10.8% monthly, after the strong increase of 16.4% in May.
GBP/USD price forecast
The recent cable turning has been threatened, with the GBP/USD registering a strong technical rejection from the 1,3600 region. The rising tendency lines, exponential mobile socks (EMA) increasing and an ascending general trajectory in price action are providing ballast in the graph, but the short -term impulse is still prepared for a setback towards the 50 -day EMA about 1,3475.
GBP/USD daily graphics
LIBRA ESTERLINA – FREQUENTLY QUESTIONS
The sterling pound (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most commercialized currency exchange unit (FX) in the world, representing 12% of all transactions, with an average of $ 630 billion a day, according to data from 2022. Its key commercial peers are GBP/USD, which represents 11% of FX, GBP/JPY (3%) and EUR/GBP (2%). The sterling pound is issued by the Bank of England (BOE).
The most important factor that influences the value of sterling pound is the monetary policy decided by the Bank of England. The Bank of England bases its decisions itself has achieved its main objective of “price stability”: a constant inflation rate of around 2%. Its main tool to achieve this is the adjustment of interest rates. When inflation is too high, the Bank of England will try to control it by raising interest rates, which makes access to credit for people and companies more expensive. This is generally positive for sterling pound, since higher interest rates make the United Kingdom a more attractive place for global investors to invest their money. When inflation falls too much it is a sign that economic growth is slowing down. In this scenario, the Bank of England will consider lowering interest rates to reduce credit, so that companies will borrow more to invest in projects that generate growth.
Published data measure the health of the economy and can affect the value of sterling pound. Indicators such as GDP, manufacturing and services PMI and employment can influence the direction of the sterling pound.
Another important fact that is published and affects the pound sterling is the commercial balance. This indicator measures the difference between what a country earns with its exports and what you spend on imports during a given period. If a country produces highly demanded export products, its currency will benefit exclusively from the additional demand created by foreign buyers seeking to buy those goods. Therefore, a positive net trade balance strengthens a currency and vice versa in the case of a negative balance
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
