GBP/USD and EUR/GBP – Prices, Charts and Analysis
- ECB and Fed are expected to raise interest rates next week.
- Few high-impact UK data next week leaves Sterling vulnerable.
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The British pound ends the week positively with Cable trading above 1.2500 and EUR/GBP testing support at 0.8800. However, both currency pairs will come under pressure next week when the Federal Reserve (Fed) and European Central Bank (ECB) release their latest monetary policy decisions on Wednesday and Thursday respectively. Both appear to be raising rates, but it is the all-important post-announcement press conference that is likely to drive price action in both the USD and EUR. With little to no data to help steer the British Pound, GBP/USD and EUR/GBP, they will be vulnerable to external forces next week.
GBP/USD rose towards the weekend, with the pair hitting two-week highs. The 1:2547 resistance is close and likely to come under pressure, and if breached, the cable will return to the levels last seen in June 2022. With GBP/USD supported by a 20-day simple price, the technical setup looks like it could go higher. moving average. The Average True Range indicator (red line at the bottom of the chart) shows the lack of volatility in the pair over several weeks.
GBP/USD Daily Price Chart – Apr 28, 2023
Chart by TradingView
change with |
longs |
shorts |
Oi |
every day | -20% | 12% | -1% |
every week | -29% | twenty one% | -1% |
GBP/USD Retail Sentiment Is Bullish
According to retail trader data, 38.09% of traders are net long, with a trader short to long ratio of 1.63 to 1. Traders’ net short is 0.53% higher than yesterday and 7.20% higher than last week.
We typically take a contrarian view of crowd sentiment and the fact that traders are net shorting suggests that the GBP/USD price may continue to rise. increase. Traders have netted even more than yesterday and last week, combining current sentiment with recent changes to Bullish GBP/USD – bullish contrarian trading bias.
EUR/GBP is also showing signs of a slightly stronger sterling as the pair begins to move lower, breaking a series of highs and highs. The resistance remains slightly above 0.8866, and the pair may return to its previous support at 0.8712.
EUR/GBP Daily Chart – April 28, 2023
Chart by TradingView
Data from retail traders shows that 42.62% of traders are net long, with a trader short to long ratio of 1.35 to 1. The EUR/GBP price trend could soon reverse despite the fact that traders remain net short.
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