GBP is higher against the US dollar as fear of risk rises. The sterling and the US currency remain stable at about 1.2250.
GBP and financial markets get a booster dose
After US bank First Citizen BancShares disclosed that it had acquired failed US lender Silicon Valley Bank. The financial markets saw an early lift on Monday. While the FDIC will retain about $90 billion of SVB’s assets, First Citizen paid about $72 billion in assets and loans at a discount of $16.5 billion.
The SBV news initially helped the European banking industry rise, but it has since mostly reversed that gain.
GBP will await upcoming data
Up until Friday, when the most recent quarterly and annual GDP numbers are published. There is not much UK data available. The UK is anticipated to have risen by 0.4% annual basis, but there isn’t expected growth on a quarter-to-quarter basis.
Economic Activity Schedule
The two notable reports out this week for the USD on the right side of GBPUSD are its most recent assessment of US GDP. On Thursday, the Fed’s preferred inflation measure core PCE was published on Friday.
The GBP Technical Perspective
Although the spread for today is very small, GBPUSD is currently trading near the 1.2250 mark. While the trend of increasing lows is almost ready to take hold, the present pattern of greater highs has broken.
While the CCI indicator has started to shift lower and out of extremes, all three moving averages are encouraging. There is a group of support among 1.2170 and 1.2210. And the first level of resistance is still at 1.2292, followed by 1.2300 and 1.2344. Before acting, pound traders should watch for a resumption of volatility in the duo
While the CCI indicator has started to shift lower and out of extremes, all three moving averages are encouraging. There is a group of support among 1.2170 and 1.2210. And the first level of resistance is still at 1.2292, followed by 1.2300 and 1.2344. Before acting, pound traders should watch for a resumption of volatility in the duo
Retail Trader’s Net short and Long Positioning
Data from retail traders indicate that 48.89% of traders are net long, with a short-to-long ratio of 1.05 to 1. The number of traders who are net-long is up 2.64% from yesterday and up 8.55% from the previous week. While the number of traders who are net short is upward by 3.60% from Monday and up 0.22% from the previous week.
