GBP/USD Tries for a Profitable End to a Busy Week

  • GBPUSD
    (${instrument.percentChange}%)

GBP/USD Analysis

This week's data-galore from the United Kingdom, revealed that CPI Inflation jumped to 11.1% y/y in October, to the highest level in fort-one years and a full percentage point above the prior month's print. In the latest release earlier today, Retail Sales grew 0.3% m/m in October, a welcome improvement over September's steep slide.

On Thursday, Chancellor Hunt announced a £55 billion tax increase and spending cut plan [1], in an effort to restore confidence and stability, following September's mini-budget fiasco. This had roiled stock and bond markets, had sent GBP/USD to record lows and eventually led to a new Prime Minister.

The Office for Budget Responsibility (OBR) provided its updated outlook for the UK economy, projecting an 1.4% contraction next year and a return to growth in 2024. [2]

GBP/USD consolidated last week's massive gains, showing little reaction to the economic releases and news, with its technical analysis not much changed from our last analysis. Bulls don't have the same vigor, but they try for another profitable week, with the key 1.2052.1.2120 still in their grasp. Further advance however, towards 1.2407, will require fresh impetus.

On the other hand, GBP/USD rejected the aforementioned key resistance area, at the stat of the week, which creates risk for a breach of mid-1.1600s. This would expose it to 1.1510-1.1430, but this area can provide support and the pair seems well protected from there on.

Trade the News: View our Economic Calendar

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 18 Nov 2022 https://www.gov.uk/government/speeches/the-autumn-statement-2022-speech

2

Retrieved 27 Nov 2022 https://obr.uk/overview-of-the-november-2022-economic-and-fiscal-outlook/

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}