GBP/USD retraces to 1.18 on a bearish channel.

12 Nov 2023

This passage provides a comprehensive overview of the GBP/USD currency pair's recent performance, along with relevant economic indicators and factors influencing the market. Let's break down the key points:

GDP Data from the UK:

The UK's Gross Domestic Product (GDP) expanded at an annual rate of 0.6% in Q3, surpassing expectations. Despite this positive data, GBP/USD continued to decline.
Technical Analysis:

Various technical indicators, including an ascending trend line, Fibonacci retracement levels, and Simple Moving Averages (SMA), are mentioned to highlight key support and resistance levels.
Strong support is identified at 1.2200, with additional levels at 1.2140 and 1.2100 if the pair falls below the support. On the upside, resistance levels are noted at 1.2250, 1.2275, and 1.2300.
Current GBP/USD Situation:

GBP/USD struggled to rebound, trading slightly above 1.2200 after four consecutive days of negative performance.
Additional UK Economic Data:

Industrial Production stagnated, Manufacturing Production increased slightly, and Total Business Investment declined in the third quarter. However, these mixed macroeconomic data did not significantly impact GBP/USD.
US Dollar Strength:

The US Dollar strengthened against other currencies following comments from Federal Reserve Chairman Jerome Powell. Powell expressed uncertainty about achieving a sufficiently restrictive stance to bring inflation down to the 2% target.
Market Expectations:

The CME Group FedWatch Tool indicates a 90% chance that the Federal Reserve will maintain its current policy. If other policymakers adopt a similar tone, the USD could strengthen further.
Market Sentiment:

US stock index futures show little change on the day, and a positive shift in risk sentiment could limit USD gains in the American session.
This information provides a comprehensive picture of the factors influencing the GBP/USD pair, combining technical analysis, economic indicators, and central bank statements to give readers a broader context for understanding the currency pair's movements.