Will the stocks of semiconductor producers rebound soon?
The amount of problems caused by the coronavirus pandemic is huge…
GBP/USD: the main pair of the day
Information is not investment advice
Investors are confused as both negative and positive factors weigh on GBP. Which side will win?
Let’s get it sorted out. We can notice on the GBP/USD chart that the price is stuck near 1.24. Most traders can’t choose the team: bears or bulls.
What's happening now?
On the bearish side, the Bank of England boosted the bond-buying program by only 100 billion pounds – much less than everybody expected. Most economists criticized it as the country hasn’t yet recovered and needs more support. Also, concerns about the second coronavirus wave weigh a lot on the sentiment-sensitive pound. New cases in Beijing, Texas and Florida have just fueled that worries.
On the bullish side, actual UK retail sales turned out better than the forecasts. Sales rose by 12% – twice more than analysts anticipated. That basically means that the British economy has started recovering. That is great, but most investors shrugged off that news.
What upcoming events may move GBP?
The UK manufacturing PMI will be released on June 23 at 11:30 MT time. If numbers come better than expected, the British pound will gain.
Brexit trade talks will have a huge impact on GBP. There are optimistic prospects that the EU and the UK can reach a deal even before the agreed deadline, that is scheduled for the end of this year. The UK Prime Minister Boris Johnson really wants to end talks as soon as possible. GBP will definitely benefit, if this happens.
Technical tips
The GBP/USD pair has just broken the support line at the 50-day moving average at 1.2400. That gave a fresh stimulus to sellers. We can assume that the price may fall to 1.2300, when it will meet the barrier. The next strong support will be at the one-month low at 1.2100. Keep an eye on the resistance at 1.2500. The move above it will push the price upward to 1.2680.
Similar
Summer starts with bullish ride in the US stock market
The first day of summer is here! What was May like for the US stock indices? And, most importantly, what should we expect next?
How to trade on OPEC meeting?
The world’s largest oil exporters, OPEC+ nations, will meet on Tuesday. The meeting is expected to start at 15:30 GMT+3.
Popular
Will the stocks of semiconductor producers rebound soon?
The amount of problems caused by the coronavirus pandemic is huge…
GBP/USD : sellers eye key support on break below 1.4000 after the FOMC
Ichimoku Kinko Hyo CAD/JPY: The pair is trading below the cloud…
USDJPY: dips to test 100 hour Moving average before FOMC
Fibonacci Levels XAU/USD: Gold facing a further consolidation above 23…
Choose your payment system
