- The GBP/USD gains strength about 1,3555 in the first bars of the European session on Monday.
- The positive perspective of the tar prevails above the 100 -day key em.
- The immediate resistance level arises in 1,3650; The first level of support to monitor is 1,3415.
The GBP/USD wins traction around 1,3555 during the early European session on Monday, driven by a weaker US dollar (USD). Commercial uncertainty tarnishes the feeling among US companies, which leads operators to reassess the status of secure refuge of the dollar and acts as a tail wind for the main torque. Operators expect the United Kingdom’s employment data to obtain a new impulse, which will be published later on Tuesday.
Technically, the constructive perspective of the GBP/USD is maintained, since the main torque is well backed above the exponential emma (EMA) of 100 days in the daily chart. The bullish impulse is reinforced by the Relative Force Index (RSI), which is located above the midline about 60.50, showing a short -term bullish impulse.
On the positive side, the first upward barrier arises in 1,3650, the upper limit of the Bollinger band. A decisive rupture above this level could gain more impulse and point to 1,3748, the maximum of January 13, 2022. More to the north, the next level of resistance is observed in 1,3834, the maximum of October 20, 2021.
In the bearish case, the minimum of May 29 in 1,3415 acts as an initial support level for the GBP/USD. A rupture of this level could drag the main torque towards 1,3250, the lower limit of the Bollinger band. The additional filter to be monitored is 1,3110, the 100 -day EMA.
GBP/USD daily graphics
LIBRA ESTERLINA FAQS
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.
