GBP/USD Breaks General Bullish Trend


The recent selling operations pushed the price of the GBP/USD pair to the threshold of the support level of 1.2600, which paves the way for a break in the bullish trend. This moved towards the resistance level of 1.2848, its highest in 14 months, and settled around 1.2640 when writing the analysis. 

Overall, the recently popular Pound still holds some recent gains compared to several currencies, including the dollar. The record increase in speculative buying over the last week and a history of losses in these conditions have led some to see it as a short-selling opportunity.

The British Pound has been on the run until recently. Still, the recovery generated by the US dollar, the surge in bond yields, and the implied market expectation of the Bank of England (BoE) bank exchange rate have halted the rise of the Pound since the middle of the month.

Prior to driving, correction is now underway. Commenting on the performance, Brad Picktel, Forex Analyst at Jefferies, said, “I am selling GBP/USD because I think the conundrum that the British economy and the Bank of England face is starting to come to a head, and I expect the currency to bear the brunt of the pain in the future. And EUR/USD looks like a short too, but I haven’t pulled the trigger here yet.”

Accelerating wage growth, a resilient economy and a rebound in core inflation have pushed the year-end market implied bank rate up to 6.25% in recent weeks and prompted the Bank of England to raise the benchmark from 4.5% to 5% last Thursday, but sterling lost ground against the dollar since then.

The dollar was broadly bought at this time, but the pound sterling, too, with the speculative market, has now grown its “long” position at the fastest rate ever over the same period, creating the risk of any future losses compounding if that part of the market heads for exits.

An increase in speculative appetite for the Pound may have prevented it from falling further in recent trade, but it could become more than just a statistical risk if the latest economic growth figures are out of the UK on Friday or if US inflation numbers go the wrong way to the Reserve Bank’s target.

Surveys of economists indicate that official figures will confirm that the UK economy expanded by 0.1% in the first quarter on Friday, just hours before the Fed’s preferred inflation gauge is directed to show that May’s core PCE inflation rate remains at 4.7% year to the end.

However, without a catalyst for a deeper correction, there are a few technical hurdles on the charts to keep GBP/USD from rising back toward the 1.2850 level seen in early June, and this could happen in the event of the current rebound in the American Stock Exchange. Prices fade for any reason in the coming days. 

The latter may be especially likely if the Fed’s preferred measure of core inflation eases further because this would put into question market expectations of higher US interest rates again later this year. However, some analysts say the currently high-level British bond yields should also prevent the Pound from falling further.

Ready to start trading the Forex markets? Enjoy free yet reliable Forex trading signals here.

This Post Has 134 Comments

  1. fitspresso

    FitSpresso is a natural weight loss supplement that will help you maintain healthy body weight without having to deprive your body of your favorite food or take up exhausting workout routines.

  2. Sight Care

    I love what you guys are usually up too. This sort of clever work and coverage! Keep up the excellent works guys I’ve you guys to blogroll.

  3. aizen power review

    What Is Aizen Power? Aizen Power is presented as a distinctive dietary supplement with a singular focus on addressing the root cause of smaller phalluses

  4. porn

    senin o bacini sikicem

  5. bulantogel

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

  6. bulantogel

    After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.

  7. Wonderful blog! I found it while browsing on Yahoo News.

    Do you have any suggestions on how to get listed in Yahoo News?

    I’ve been trying for a while but I never seem to get there!

  8. hire a hacker online

    It’s hard to find knowledgeable people on this topic, but you sound like you know what you’re talking about! Thanks

  9. Sebastian Schmidt

    Fantastic site A lot of helpful info here Im sending it to some buddies ans additionally sharing in delicious And naturally thanks on your sweat

  10. ctr manipulation

    Howdy! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me. Anyways, I’m definitely glad I found it and I’ll be bookmarking and checking back frequently!

  11. pips crypto

    I’m not that much of a online reader to be honest but your sites really nice, keep it up! I’ll go ahead and bookmark your website to come back down the road. Cheers

  12. novac

    I want reading and I think this website got some really useful stuff on it! .

  13. prop firms

    I like what you guys are up also. Such intelligent work and reporting! Carry on the superb works guys I have incorporated you guys to my blogroll. I think it will improve the value of my web site 🙂

  14. temp mail

    I appreciate your website, however I think you might check the spelling of a few of your postings. Even though I find it quite difficult to tell the truth because so many of them have spelling errors, I will most certainly return.

  15. porno

    watch porn video bxjluajsxzz.srH0oaFBjeQx

  16. escort

    sexx bjluajszz.t3pq0QFKJGCE

  17. temp mail

    Outstanding article. Additionally, your website loads up extremely quickly. Could you provide me with your affiliate link to your web host? I wish my site could load up as quickly as yours.

  18. bahis porno

    pornhub bahis siteleri hepxhupx.2QFCEa4iRWfg

  19. craft porn

    bahis siteleri child porn hephupx.MgSp7EQEXnE0

  20. food porn

    bahis siteleri porn sex incest asillartaklitler.1NRNhOSMZj7k

  21. viagra

    sexax wrtgdfgdfgdqq.IHef4nTHUG6y

  22. escort

    porn sex ewrjghsdfaa.mXc72RWyLlF9

  23. viagra

    sektor benim zaten amin evladi citixx.HcwOnZphycbc

  24. viagra

    anal siteleri vurgunyedim.5NCac0yObloL

  25. Puravive Weight Loss

    I loved you even more than you’ll say here. The picture is nice and your writing is stylish, but you read it quickly. I think you should give it another chance soon. I’ll likely do that again and again if you keep this walk safe.

  26. scampered

    scampered xyandanxvurulmus.4pp2bWAN7QB6

  27. tlovertonet

    Well I definitely enjoyed reading it. This tip offered by you is very constructive for correct planning.

  28. porn sex


  29. Maple

    When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each
    time a comment is added I get several emails with the same comment.
    Is there any way you can remove people from that service?
    Thank you!

  30. Tia

    I need to to thank you for this wonderful read!! I certainly enjoyed every bit
    of it. I have you bookmarked to check out new things you post…

  31. נערות ליווי

    I was pretty pleased to uncover this website. I wanted to thank you for ones time for this wonderful read!! I definitely savored every part of it and I have you saved as a favorite to see new information on your site.

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us


Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.