24 Oct

Pound is Recovering Fast

October 24, 2022

By RoboForex Analytical Department

On Monday, GBPUSD is rising, chiefly fluctuating near 1.1380.

The pound quite fast recovered from the stress provoked by Liz Truss leaving her post. This reshuffling of the government might have been inevitable because Truss’s economic policy was unpopular and could have some consequences.

Now London needs to be patient and wait for the election of a new Prime Minister. The most probable candidate is the former minister of finance Rishi Sunak.

The new Prime Minister will face a most complicated task to reassemble the British economy after the Brexit trauma, with all the supply issues and foreign trade trouble.

On H4, the currency pair completed a wave of correction to 1.1060. At a certain point, the market demonstrated an impulse of growth to 1.1300 and is today consolidating around this level. With an escape upwards, the wave of growth may continue to 1.1560; the goal is local. After the goal is reached, a correction to 1.1300 is possible (with a test from above), followed by growth to 1.1677. Then the trend may continue to 1.0200. Technically, this scenario is confirmed by the MACD oscillator. Its signal line is above zero and continues developing a structure of growth to new highs.

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On H1, GBP/USD performed an impulse of growth to 1.1300. Today the market opened with a gap upwards and continues forming a consolidation range around the level. With an escape upwards, the impulse may continue to 1.1560. With an escape downwards, the wave of decline may continue to 1.1010. Technically, the scenario is confirmed by the Stochastic oscillator. Its signal lines bounced off 20 and goes on growing to 50. With a breakaway upwards, growth will continue to 80. If the line bounces off 50 downwards, another link of decline to 20 is not excluded.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.


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