Be the first to like this
The GBPUSD has again put another good performance after unemployment rate figures fell to 7.1% during the three months to the end of November.
The GBPUSD has now been surging for more than 6 months. Over that period the UK currency appreciated partly:
due to an improvement in the economic outlook for the United Kingdom. the US dollar ERI depreciated by 1%. There was a sharp decline in the index following the FOMC’s decision in September not to slow the pace of its monthly asset purchases and dollar weakness continued during the federal government shutdown.
Investors have been favouring the GBPUSD long positions and besides the bullish sentiment surrounding the UK currency, analysts are expecting a drop to a more favourable level for the UK economy to keep boosting its economic growth.
Factors that might influence a lower GBPUSD are:
Improving US economic outlook.
Attractive interest rates and earnings potential will trigger repatriation flows into USD assets.
The GBP is considered overvalued.
Increasing volatility is expected at current level leaving the GBP highly exposed to downside or small correction.
Conclusion at cfdmaster.com