GBPUSD could test support at $1.0812

10 ott 2022

The pound is on a four-day losing streak against the USD, and the general trend is downwards once again; the pair is losing the gains it made during the previous weeks. The price trades below the short and long-term moving averages, suggesting that the price could sink further down.

The Bollinger bands are wide, allowing high volatility in the short term; however, the upper band is starting to shrink, suggesting that the price could begin a consolidation phase in the medium term.

The relative strength index is currently at 41%, which will allow the pair to continue falling in the upcoming sessions; we could expect a short-term sentiment change once it gets closer to 30%.

The support level on our 23.6% Fibonacci retracement at $1.0812 could be tested in the upcoming sessions.

Upcoming Events

The UK will release the Unemployment Rate economic indicator in the next trading session; it is expected to remain unchanged at 3.6%; a figure higher than expected will be bearish for the GBPUSD pair as it suggests economic deacceleration.

Later in the day, the UK will also release Claimant Count Change, which gauges the number of people looking for unemployment benefits. Experts anticipate an increase from 6.3K to 10K this month. A higher figure will hurt the British pound against other currencies.

Later in the week, the UK will also release Gross Domestic Product MoM and Goods Tarde Balance, which will significantly impact the GBPUSD exchange rate.

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