empty
 
 

18.01.202208:27 Forex Analysis & Reviews: Red-hot forecast for GBP/USD on January 18, 2022

Despite the federal holiday in the US on Monday, Martin Luther King Day, the pound sterling slipped for a while, though it was a minor decline. Bearing in mind that the sterling is obviously overbought, it should have fallen to a greater extent unless American traders took a day off.

For the time being, the British pound is set to decline amid the overbought market conditions and forecasts for the UK macroeconomic data. The jobless rate in the UK is expected to remain flat in December. The number of applications for unemployment benefits could have contracted by 36K in December. The employment could have increased by 115K. On the flip side, average earnings might have dropped to 3.7% in November from 4.3% in October. In other words, the unemployment rate remains the same in the Kingdom, but wages go down. If we take into account the persistent soaring inflation, the situation looks dismal. No wonder, retail sales data have been printing worse readings month after month. Under such conditions in the labor market, it would be logical to expect a gradual decline of the British currency.

UK Unemployment Rate

Exchange Rates 18.01.2022 analysis

The inertial move of GBP/USD slowed down at about 1.3750 where the currency pair got stuck and then make a 100-pips upward retracement. The sterling has rallied for 4 weeks straight. Being still overheated, the odds are that the sterling will lose ground despite the ongoing retracement.

The RSI technical instrument is moving below the pivotal line of 70 on the daily chart, but it is still generating the signal of the sterling's overbought status.

Outlook for GBP/USD

In this situation, the retracement can at least push the price down towards the level of 1.3600 passed earlier. This could happen in case the US dollar regains its footing. To make a full-fledged correction instead of a retracement, GBP/USD has to settle below 1.3560 on the 4-hour chart. Otherwise, the price might get trapped at around 1.3600 again.

Complex indicator analysis suggests selling GBP/USD for the short term and intraday amid the ongoing retracement. Technical indicators are signaling that we could buy the currency pair in the medium term because of the inertial move.

Exchange Rates 18.01.2022 analysis

*تعینات کیا مراد ہے مارکیٹ کے تجزیات یہاں ارسال کیے جاتے ہیں جس کا مقصد آپ کی بیداری بڑھانا ہے، لیکن تجارت کرنے کے لئے ہدایات دینا نہیں.

Dean Leo,
انسٹافاریکس کا تجزیاتی ماہر
© 2007-2022
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Hot forecast for EUR/USD on 01/07/2022
The US unemployment claims data suddenly turned out to be noticeably worse than expected. First of all, due to the revision of previous data. The number of initial applications should have been reduced from 229,000
Author: Dean Leo
03:11 2022-07-01 UTC--4
3718
Hot forecast for GBP/USD on 30/06/2022
The pound came out of a two-week horizontal movement and returned to the trend to strengthen the US currency, but there is not a single reason for such a movement
Author: Dean Leo
03:09 2022-06-30 UTC--4
5083
Hot forecast for EUR/USD on 29/06/2022
Amid a completely empty macroeconomic calendar, the single European currency, strictly within the framework of technical factors, moved from the upper limit of the range to the lower one, and today...
Author: Dean Leo
03:10 2022-06-29 UTC--4
5938
Show more



  • ٹریڈ وائز، ون ڈیوائس
    کم از کم 500 ڈالر کے ساتھ اپنے اکاؤنٹ کو ٹاپ اپ کریں، مقابلے کے لیے سائن اپ کریں، اور موبائل ڈیوائسز جیتنے کا موقع حاصل کریں۔
    مقابلہ میں شامل ہوں
  • انسٹا فاریکس کی جانب سے فیراری
    کم از کم 1,000 ڈالر کے ساتھ اپنا اکاؤنٹ ٹاپ اپ کریں
    join the contest and win Ferrari
    F8 Tributo
    مقابلہ میں شامل ہوں
  • چانسی ڈپازٹ
    اپنے اکاؤنٹ میں 3,000 ڈالر کے ساتھ جمع کریں اور 1,000 ڈالر جیتیں
    مقابلہ میں شامل ہوں
  • 100 فیصد بونس
    اپنے ڈپازٹ پر 100 فیصد بونس حاصل کرنے کا آپ کا منفرد موقع
    بونس حاصل کریں
  • 55 فیصد بونس
    اپنے ہر ڈپازٹ پر 55 فیصد بونس کے لیے درخواست دیں
    بونس حاصل کریں
  • 30 فیصد بونس
    ہر بار جب آپ اپنا اکاؤنٹ ٹاپ اپ کریں تو 30 فیصد بونس حاصل کریں
    بونس حاصل کریں
ابھی فوری بات نہیں کرسکتے ؟
اپنا سوال پوچھیں بذریعہ چیٹ.