Hot forecast for GBP/USD on 31/05/2023
May 31, 2023 8:22 amVideo
Latest News
- Analysis of GBP/USD on April 26th. The pound trades on Friday without changes April 26, 2024
- USD/JPY: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- EUR/USD: Simple trading tips for novice traders on April 26th (US session) April 26, 2024
- GBP/USD: trading plan for the US session on April 26th (analysis of morning deals). The pound attempted, but it didn’t go April 26, 2024
- EUR/USD: trading plan for the US session on April 26th (analysis of morning deals). The euro continues to rise April 26, 2024
- Trading Signals for GOLD (XAU/USD) for April 26-29, 2024: buy above $2,324 and sell below $2,352 (21 SMA – 6/8 Murray) April 26, 2024
- Technical Analysis – AUDUSD set to complete best week of the year April 26, 2024
- Will Apple finally drop its AI hint? – Stock Markets April 26, 2024
- Bitcoin slips as markets pare back Fed rate cuts – Crypto News April 26, 2024
- EUR/USD. April 26th. Bulls continue to advance after the GDP report April 26, 2024
- Can Chinese PMIs solidify the economy’s recovery prospects? – Preview April 26, 2024
- Weekly Forex Outlook: 26/04/2024 – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- XM’s Lombok Collaboration: Brightening Futures April 26, 2024
- Week Ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too April 26, 2024
- Market Comment – Yen keeps sinking after Bank of Japan decision April 26, 2024
- Fed faces dilemma amid sticky inflation and slowing economy – Preview April 26, 2024
- USD/JPY: trading tips for beginners for European session on April 26 April 26, 2024
- GBP/USD: trading tips for beginners for European session on April 26 April 26, 2024
- EUR/USD: trading tips for beginners for European session on April 26 April 26, 2024
The British pound experienced a significant bounce on Tuesday. Much of this is purely an emotional reaction. Over the weekend, US President Joe Biden announced that the vote on the debt ceiling would take place on May 30th. However, it turned out that yesterday was only a committee vote, while the House of Representatives will consider the matter today. But if it passes successfully, the Senate vote will only take place on June 2nd. According to Janet Yellen, the Treasury Department will run out of funds by June 5th. Moreover, several Republican representatives have already said that they will vote against it. In other words, not only were the expectations not met, but the risk of uncertainty remains. The media can continue publishing materials speculating on what will happen if the United States declares default. Of course, such things do not contribute to the dollar’s growth. Although it doesn’t have much room to rise anyway, due to its overbought condition.
Even if the pound immediately weakened after it significantly bounced, which resembles a technical retracement, the British currency has good chances to strengthen further. This could be triggered by data on job openings in the United States, which is expected to fall from 9.6 million to 9.2 million. This does not bode well in anticipation of the Labor Department’s report. Any signs of deterioration in the labor market are always perceived unequivocally as a weakening of the national currency.
The consolidation along the 1.2350 level was ended by an upward movement. This was the first technical sign of a possible end to the two-week corrective cycle from the medium-term uptrend.
On the four-hour chart, the RSI upwardly crossed the 50 middle line. Meanwhile, the Alligator moving averages (MA) had a crossover. These technical signals indicate the end of the corrective movement.
Outlook:
For the next round of growth in the volume of long positions on the pound, it is necessary for the exchange rate to stay above the 1.2450 level. In this case, a subsequent recovery relative to the recent corrective cycle is possible.
Until then, we shouldn’t rule out the possibility of the price returning to the area near the 1.2350 level.
The comprehensive indicator analysis in the short-term and intraday periods implies that the pound looks to recover.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: