GBPUSD – Flat
Event to pay attention to today:
15:30 EET. USD – Unemployment Claims
GBPUSD:
GBP/USD currency pair was not traded on Wednesday due to the closure of the Forex market. On the weekly timeframe, the pound demonstrates similar dynamics to the euro. The differences lie in the strength of the movements, reflecting the different stability of the euro and the pound.
However, the general trend is set by the growth of the US dollar, which has been strengthening for 16 years. This confirms that it is the dollar that is driving the market, not the weakness of the euro or pound.
Over the past 16 years, the euro has depreciated 1.55 times and the pound 1.69 times. The pound’s faster fall is due to the UK’s economic problems. The pound has recovered more strongly than the euro over the past two years, but this movement remains a correction within a global downtrend.
The fall in the British currency is likely to continue. If the global trend is not completed, the pound could fall to the 1.18 level in 2025 or even below this parity. The completion of a 16-year trend requires significant catalysts, which have not yet been seen.
The main driving force for the pair remains economic data from the US, while the British Pound continues to be under pressure due to weak macroeconomic data and political instability in the UK. Investors should keep an eye on news related to the Fed’s monetary policy and interest rate expectations.
Trading recommendation: Trading mainly with Sell orders from the current price level.
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