- English (UK)
- English (UK)
.jpg?height=93&quality=100)
The quid has a few factors working in its favour 1) A tight labour market with higher than expected wages 2) significantly net short speculator positioning, putting some short squeeze pressure on 3) the stake that the UAE has taken in Vodafone could be seeing some GBP buying. With inflation expected to be a doozy out of the UK tomorrow, it could put further pressure on the BoE to tighten rates. Friday’s retail sales could however show a consumer seriously struggling and may dampen some of those punchy rate expectations. We have Liz Truss up shortly in the House of Commons to give us an update on Brexit which could hurt sterling.
(Source: Tradingview - Past performance is not indicative of future performance.)
Technically, it looks like a time for potential shorts to be looked at. On the daily timeframe, price has pushed right up against the 200-day SMA and the round number at 1.25. The RSI is also showing some early signs of negative divergence and fast approaching the 65 level which was were price struggled in the past. Zooming in to the 4-hour timeframe we can see price is now right at the top of the range resistance and the RSI is rolling over from overbought territory and has some negative divergence similarly to the daily timeframe. Price levels which could be key for pullbacks are the 1.235 and the 50-day SMA around 1.225.
Related articles
Ready to trade?
It's quick and easy to get started. Apply in minutes with our simple application process.
The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.