CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

GBPUSD Analysis: April Highs Set a Weekly Ceiling

Article By: ,  Market Analyst
May 17, 2024 3:12 PM
  • GBPUSD Analysis: a weekly uptrend ceiling is being approached near 1.2730
  • Upcoming CPI metrics are awaited on Wednesday to confirm a 3-month downtrend streak
  • BOE Governor Bailey’s speech on Tuesday is awaited to clarify the rate cut timeline

Latest statements from Governor Andrew Bailey reflected the bullish potential of the UK economy, as he claimed that markets have not yet priced in the full impact of the coming rate cuts below the 16-year highs.

The optimism of the BOE will be confirmed by the consumer price inflation results on Wednesday if the metrics revealed a 3-month downtrend streak.

From an investment perspective, the latest BOE release highlighted an underperformance in productivity growth and business investment. In terms of the Final Purchasing Manager’s Index, the previous manufacturing PMI remained below expansion levels with the latest result at 49.1. Meanwhile, the services PMI increased further to 55, reflecting a generally mixed signal.

GBPUSD Analysis – Daily Timeframe – Logarithmic Scale

The downward duplicate of this year’s up trending parallel channel remained valid this week, with the 1.27 resistance lying in the mid-channel range. A break above 1.2730 zone is needed to confirm further uptrends toward the upper end of the channel near March highs. The resistance near march highs can be encompassed in a range between 1.2830 and 1.2880. On the downside, the lower end of the duplicated channel is expected to potentially hold support near 1.2450, given the initial break below 1.25.

Another factor to consider on the GBPUSD charts is the FOMC minutes and insights. The pair’s uptrend this week was boosted by a weaker dollar amid lower U.S inflation rates, and related news can impact the chart once again.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024