The GBP/USD is trading near the 1.14090 mark as of this writing. Late yesterday’s value displayed a low of nearly 1.13325; this after the GBP/USD touched a high around the 1.15670 mark earlier on Wednesday. The GBP/USD hit the 1.16000 realm on Tuesday before falling back. These numbers are remarked upon to show that solid price action is taking place in the GBP/USD, and speculators should be prepared for potential volatility.
Nervous conditions exist within the global financial world for a myriad of reasons. Tomorrow the U.K will deliver its Gross Domestic Product statistics, which the British public has literally been warned by the Bank of England to expect negative results. Today the U.S will publish CPI data which will give insights regarding inflation in the States.
These two reports would be enough to create nervous conditions for the GBP/USD. However, other concerns are shadowing financial markets and depending on how behavioral sentiment leans; the GBP/USD could have extra fuel added to what already are rather turbulent conditions.
The price Range of GBP/USD is Alluring and Speculative
Retail traders who enjoy the potential of volatile Forex may be attracted to the GBP/USD if they have solid technical perspectives. Unfortunately, these technical perspectives could be proven wrong, but if behavioral sentiment considerations are added to the mix perhaps that will help to wager on the GBP/USD. The use of word wager is meant to describe ‘a bet’.
Economic data from the U.K and U.S are likely to be interpreted as negative, most financial houses have prepared for this and have may have already positioned their trading for unflattering outcomes. Meaning that this may be an opportunity to wager in a contrarian manner if speculators feels support levels of the GBP/USD are going to prove durable.
- If support near the 1.13700 to 1.13250 realms shows they are strong, this could spark higher moves for the GBP/USD and it would not be surprising to see the 1.15000 ratios tested again near term.
- Forex has dealt with plenty of bad news from the U.K in the past two months, so today’s U.S CPI data and tomorrow’s U.K GDP results may not shock the market even if they are bad outcomes.
Speculators who are tempted to buy the GBP/USD via perceived support ratios and are looking for targeted higher price action may find worthwhile opportunities to wager today and tomorrow. Choppy conditions should be anticipated, so careful risk management will be needed to safeguard against sudden spikes which may have a lot of price velocity.
GBP/USD Short-Term Outlook:
Current Resistance: 1.14299
Current Support: 1.13810
High Target: 1.15119
Low Target: 1.13275
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