empty
 
 

20.10.202108:41 Forex Analysis & Reviews: GBP/USD breaking forecast on October 20, 2021

The pound's rally stopped ahead of the North American session despite disappointing housing starts data in the US. The reading fell by 1.6%, missing expectations of a 0.9% drop. On top of that, building permits plunged by 7.8%. The indicator had been forecast to decrease by 1.8%. All this indicates that housing starts will continue to fall. Given all that, the greenback should have gone down. Instead, it edged higher. Since the publication of the industrial production report in the US, the sterling has skyrocketed, becoming overbought as a result.

United States Housing Starts:

Exchange Rates 20.10.2021 analysis

Nevertheless, GBP is incurring losses today despite a slowdown in the UK's inflation to 3.1% versus 3.2%. Although the current drop in the reading is seen as a positive factor amid a global increase in inflation, it does not change anything. Inflation is still at high levels, meaning that the Bank of England's plans for raising interest rates will remain unchanged. Moreover, such a modest fall in inflation may well turn out to be temporary, and its growth could resume next month. In addition, the sterling's recent growth may turn out to be too sharp and too rapid given that all the factors that boosted the greenback have not gone anywhere. Generally speaking, the bullish trend in USD is resuming.

United Kingdom Inflation:

Exchange Rates 20.10.2021 analysis

The corrective move in GBPUSD has resumed. As a result, the pair updated its swing high and headed towards the resistance zone of 1.3800/1.3830.

The Relative Strenght Index (RSI) is moving within the oversold zone of the H4 chart. From time to time, it touches line 70, signaling increased demand for long positions.

Meanwhile, the 50.0% retracement level provided resistance to the quote on its way upward.

There is a bearish trend on the D1 chart. In its structure, a full-size corrective move took place between September 30 and October 19.

Outlook:

It can be assumed that the trend may reverse, which is confirmed by the pound's oversold status. Consolidation below 1.3780 will signal to sell the pair. Consequently, it may go down to 1.3730. If so, the price is likely to continue falling.

In terms of complex indicator analysis, technical indicators are signalling to sell the pair for intraday and short-term trading due to a pullback from the resistance level.

Exchange Rates 20.10.2021 analysis

*这里的市场分析是为了增加您对市场的了解,而不是给出交易的指示。

Dean Leo,
Analytical expert of InstaForex
© 2007-2021
立即从分析师的建议受益
充值交易账户
开设交易账户

InstaForex分析评论将让您充分了解市场趋势! 作为InstaForex的客户,您将获得大量的免费服务以实现有效的交易。

EUR/USD hot forecast on November 26, 2021
A holiday in the United States actually means a day off for the whole financial world and is accompanied by the evident stagnation, which will last for the whole day.
作者: Dean Leo
01:32 2021-11-26 UTC--5
1858
Hot forecast for GBP/USD on 11/25/2021
Despite the fact that the data on orders for durable goods decreased, instead of increasing, the dollar continued to strengthen its position, which is associated with other data, from which, in principle, nothing was expected...
作者: Dean Leo
02:11 2021-11-25 UTC--5
8653
Breaking forecast for EUR/USD on November 24
Yesterday, the euro made two attempts to resume growth but failed. Notably, the preliminary estimates for the EU and US PMI indexes should have pushed it higher.
作者: Dean Leo
02:20 2021-11-24 UTC--5
5023
展示更多
现在无法通话?
提出您的问题,用 在线帮助.