empty
 
 
18.05.2021 08:54 AM
Hot forecast for GBP/USD on May 18, 2021

The coronavirus is once again becoming the main topic of the day. This time, the news is exclusively in a positive context. The UK has recorded the lowest number of cases of coronavirus infection in the past fourteen months. Even before such a significant event, talk did not subside that the vaccination program was yielding results, and the epidemiological situation was clearly declining, so that quarantine and restrictive measures could be completely canceled very soon. Now, there is no doubt about this at all. At the moment, it is only about whether the restrictive measures will be lifted by the end of the month, or whether it will happen in June. In any case, the pound has clearly perked up on this news.

This image is no longer relevant

Such great news will clearly overshadow everything else, and investors will probably not pay attention to the data on the labor market, which should show an increase in the unemployment rate from 4.9% to 5.0%. Moreover, there have long been many questions about the data provided by the United Kingdom regarding the labor market. In general, the situation does not look the best. However, the prospect that the UK will be the first of the major countries to completely remove restrictive measures will allow us to put aside all sorts of unpleasant questions—at least for a while. But this may be quite enough for the pound to significantly strengthen its position. In addition, the increase in the unemployment rate in the UK is now hardly surprising. On the contrary, it will be perceived as something normal. This is something of an afterthought and keeping up with Europe and the United States. So, even if such wonderful news had not come from London, the pound would hardly have noticed the increase in the unemployment rate at all.

Unemployment rate (UK):

This image is no longer relevant

The GBP/USD currency pair continues to pursue an upward cycle, which ultimately leads to a full recovery relative to the corrective move 1.4224 ---> 1.3668. Market dynamics is slightly below average, but speculative interest is visible to the naked eye, following from a number of technical indicators.

Based on the current location of the quote, it is worth highlighting the upward interest during the Asian session, on the basis of which the local maximum of May 11 - 1.4165 was broken.

Looking at the trading chart in general terms, the daily period can be seen as a medium-term upward trend, which is still relevant among traders.

In this situation, it is worth paying special attention to the local maximum of the medium-term trend of 1.4224 from February 24, the area of which stands in the way of buyers. The logical basis associated with the 1.4180 / 1.4224 area may well reduce the volume of long positions, but it should be kept in mind that speculative interest, as before, takes place in the market, therefore, keeping the price higher than 1.4224 may lead to unjustified expectations and another burst of long positions along an upward trajectory.

From the point of view of a comprehensive indicator analysis, it can be seen that technical instruments unanimously signal a buy, due to the price movement at the high of the medium-term trend.

This image is no longer relevant

Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO
  • Depósito al azar
    ¡Haga un depósito en su cuenta de $3,000 y obtenga $1000 más!
    ¡En Abril, sorteamos $1000 dentro de la campaña Depósito afortunado!
    Obtenga la oportunidad de ganar depositando $3,000 en una cuenta de operaciones. Tras haber cumplido esta condición, se convertirá en un participante de la campaña.
    UNIRSE AL CONCURSO
  • Opere de forma inteligente, gane un dispositivo
    Recargue su cuenta con al menos $500, regístrese en el concurso y tenga la oportunidad de ganar dispositivos móviles.
    UNIRSE AL CONCURSO
  • 100% de bonificación
    Su oportunidad única de obtener un bono del 100 % en su depósito
    OBTENER BONO
  • 55% de bonificación
    Solicite un bono del 55% en cada depósito
    OBTENER BONO
  • 30% de bonificación
    Reciba un bono del 30% cada vez que recargue su cuenta
    OBTENER BONO

Recommended Stories

¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback