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HomeForex NewsBritish Pound (GBP) Forecast: New Quarter Carries Over GBP Pressures

British Pound (GBP) Forecast: New Quarter Carries Over GBP Pressures


POUND STERLING TALKING POINTS

  • EUR and USD favored in opposition to GBP.
  • Highlight on U.S. and EU financial knowledge.

GBP FUNDAMENTAL BACKDROP

Pound sterling is having a troublesome time this week in opposition to the U.S. dollar and euro respectively. The ECB Sintra Discussion board noticed the Federal Reserve through Jerome Powell shock markets on the hawkish aspect thus boosting the greenback . Yesterday, Russia withdrew troops from Ukraine as a “gesture of goodwill” leaving the euro bid at the side of looming ECB rate hikes to quell inflationary pressures within the eurozone. These elementary headwinds left the pound weaker whereas UK financial knowledge confirmed housing costs slipping within the month of June.

Brexit developments may additionally play a task within the pound though up till now we have now not seen vital reactions inside GBP crosses.

To shut off the week, eurozone core inflation and U.S. ISM Manufacturing PMI can be in focus. Eurozone core inflation is estimated to come back in greater than the earlier launch which may help additional EUR upside. ISM knowledge however is forecasted decrease and will play into the fingers of an already fearful market on the subject of an impending recession.

GBP/USD & EUR/GBP ECONOMIC CALENDAR

economic calendar

Supply: DailyFX Economic Calendar

TECHNICAL ANALYSIS

GBP/USD DAILY CHART

gbpusd daily chart

Chart ready by Warren Venketas, IG

Cable has been comparatively muted however stays in it’s latest consolidatory sample as bears look to retest the 1.2080 (76.4% Fibonacci) degree. We may see additional draw back in the direction of the 1.1934 swing low however I’m leaning in the direction of some form of bullish restoration medium-term (albeit incremental).

Key resistance ranges:

  • 1.2494
  • 1.2400/50-day EMA (blue)/Trendline resistance (black)
  • 20-day EMA (purple)

Key help ranges:

EUR/GBP DAILY CHART

eurgbp daily chart

Chart ready by Warren Venketas, IG

Each day EUR/GBP price action reveals yesterday’s long lower wick organising the bullish bias for at this time as costs stay inside the medium-term rising wedge formation (black). Technical evaluation factors to a pullback by the pound because the RSI reveals slowing upside momentum contradicting corresponding costs motion (bearish divergence) nevertheless, timing divergence will be tough.

Key resistance ranges:

Key help ranges:

  • 0.8600/ Wedge help
  • 0.8530

Contact and comply with Warren on Twitter: @WVenketas





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