GBP/USD Flirts around the 200-Day MA


GBP/USD continues to flirt with a break or bounce of the 200-day MA just below the 1.2100 level. Earlier this morning we had weaker than expected UK Q3 GDP data which failed to inspire a break lower with the lack of liquidity in markets no doubt playing a role. The data adds further credence to the belief that the UK has slipped into a recession.

UK GDP data is estimated to have fallen by 0.3% in Q3, a downward revision from the first estimate of 0.2%. We have seen downward revisions across 2022 meaning that real GDP is now estimated to be 0.8%, below its pre-pandemic level (revised from the previous estimate of being below 0.4%).

Real households’ disposable income (RHDI) continues to feel the effects of the rising cost of living as it fell by 0.5% this quarter; this is the fourth consecutive quarter of negative growth in the RHDI. Output is now estimated to have fallen by 0.3% which was revised from a first estimate fall of 0.2%, mainly reflecting revisions to estimates of production and construction output.

Most service sub-sectors have seen a slowdown, yet services output grew by 0.1% in Quarter 3 2022, revised up from a first estimate of flat output. Compared with pre-coronavirus (COVID-19) pandemic levels, services output is now 1.3% below its Quarter 4 (Oct to Dec) 2019 levels, revised down from previously 0.9% below. We did see the UK’s trade deficit for goods and services improve in Quarter 3 2022.

GBP/USD continues to flirt and find support off the 200-day MA. This morning’s weaker than expected GDP data looked like it could facilitate a break lower, however the weaker dollar has seen the pair edge higher in early European trade. The poor GDP data and slightly dovish stance by the BoE last week are likely to cap upside gains as the week winds down.

The pair is up 60 pips from its daily low around the 1.2060 level, with a daily candle break and close below the 200-day MA may see a test of the psychological 1.2000 level.

This Post Has 2 Comments

  1. sklep internetowy

    Wow, amazing weblog structure! How long have you ever been blogging
    for? you make blogging look easy. The entire look of your website is magnificent, as well as the content!
    You can see similar here najlepszy sklep

  2. Iscriviti a binance

    Can you be more specific about the content of your article? After reading it, I still have some doubts. Hope you can help me.

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.