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GBPUSD bounces off Pivot and May’s pledge to EU leaders

GBPUSD shifts off technical level

  • 2019 GDP forecast of 1.2% (previously 1.7%)
  • 2020 GDP forecast of 1.5% (previously 1.7%)
  • Says that CPI to temporarily fall below 2% target in coming months
  • Cuts estimate for supply growth to ‘a little below 1.5%’
  • Inflation in one year’s time at 2.35% (previously 2.10%)
  • Inflation in two year’s time at 2.07% (previously 2.12%)
  • Inflation in three year’s time at 2.11% (previously 2.03%)
  • This fall in expectations was expected, and was to do with Brexit concerns weighing more heavily on the UK. It is obvious that businesses will be holding back investment until the Brexit saga is finalised and the BOE said that ‘the uncertainty had intensified’. 

    The bid in the GBP stayed through the European and US session yesterday. The key buying zone at the 1.2900 region and Pivot point on the daily chart below has provided support. I bought into Mark Carney’s optimism at around 1.2903, but holding at break even to see if this is the start of a new leg higher. Near term risk for buyers is below the 100EMA on the daily chart below and the pivot point. 

    p.s. Don’t hold the GBP over the weekend to avoid any nasty surprises come Monday morning. Monday morning can be bad enough as it is. Close today and re-open on Monday. You’ll enjoy the weekend more 😉

    GBP
    ForexLive

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