Forex Field Guide for Pound Sterling (SEP 2022)

Reference guide covering Fundamental, Sentiment and Technical factors of the GBP

TECHNICAL ANALYSIS

Last year in 2021, the value of the Pound fell 2.00% as it moved from $1.37 to $1.34 which was in opposition to the trajectory which turned bullish in March when the 50 day moving average climbed above the 200 day. The momentum was bullish until September when it turned mixed as the value fell below the 50 day moving average but above the 200 day.

This year, the momentum has turned bearish as has the trajectory. This indicates that the downside support area at $1.05 is being targeted which was previously tested over twenty five years ago in February 1985.

Trading Economics forecasts a less valuable Pound Sterling: $1.16 in Q3; $1.14 in Q4; $1.27 in Q1.

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SENTIMENT ANALYSIS

ECONOMIC SLOWDOWN NARRATIVE

What’s Happening? | UK GDP for Q1 2022 was confirmed at 0.8 percent expansion which is slower than the 1.3 percent expansion for Q4 2021. The MPC projections for 2023 indicate that the economy will contract.