GBP/USD Analysis Report: Prior to the US midterm elections, the GBPUSD has detected an intermediate cushion around 1.1500.

Nov 08, 2022

VOT Research Desk

Around the psychological support of 1.1500 in the Tokyo session, the GBPUSD pair felt a reversal in the downward trend.

Given that concerns about a US economic slump are intensifying, the Cable may bounce strongly going forward.

The S&P500 futures are increasing their gains in Asia following a strong Monday, further reinforcing the favorable risk profile.

When it comes to the UK, the publication of the Gross Domestic Product (GDP) numbers will command attention.

The GDP figure is considered as being lower on an annual basis, at 2.1%, compared to the previous announcement of 4.4%. Additionally, the quarterly regime is predicted to see negative growth of 0.5% compared to growth of 0.2%.

Meanwhile, the Brexit agreement has gained confidence following a conversation with UK Prime Minister Rishi Sunak and President of the European Commission Ursula von der Leyen at the CP27 climate meeting.

According to SkyNews, at their initial discussion, the officials decided to work together to resolve the current dispute about the Northern Ireland protocol (NIP).