Forex weekly forecast for GBPUSD and EURGBP. With cable back over 1.2500 and EURGBP hitting support around 0.8800
The Forex markets witnessed a bullish GBP
Forex Markets saw the pound has finished the week on the upswing as cable has risen back over 1.2500. And the EURGBP has found support near 0.8800. The Fed and the ECB will each release their most recent monetary policy decisions on Wednesday and Thursday of next week. Putting influence on both duos. Although either is expected to push interest rates upwards. The British Pound will be susceptible to outside influences next week. Since there will be little to no data to assist in directing it.
Going into the weekend, GBPUSD is moving higher after establishing a new two-week top. In the event that resistance at 1:2547 fails, the cable will return to values that were last seen in June 2022. This barrier is near and might be under pressure. The GBPUSD duo is supported by the 20-day SMA and the technical situation is good for another leg higher. The lack of volatility in the pair over the past several weeks is depicted by the Average True Range indicator.
THE RETAIL POSITIONING GBPUSD MOOD IN R IS BULLISH
According to statistics from retail traders, 38.09% of traders are net long, having a short-to-long split of 1.63 to 1. The amount of traders who are net-long is down 4.31% from Friday and down 19.38% from the previous week While the quantity of traders who are net-short is up 0.53% from Friday and up 7.20% from the week before.
With the currency pair beginning to trend lower and snapping a string of rising lows and greater highs. The EURGBP is also displaying indicators of a slightly stronger Pound. The resistance at 0.8866 is still in place, leaving the duo open to a decline back to the previous support at 0.8712.
EURGBP Daily Graph
Source: TradingView
According to statistics from retail traders, 1.35 traders for every 1 short trader shows a net long position of 42.62 percent. Regardless of the fact that investors are still net short on the EURGBP. Recent shifts in sentiment indicate that the price trend could soon shift lower
