British Pound Update – GDP Picks Up in January, GBP Unchanged, FTSE Tests Resistance

GBP/USD and FTSE 100 Evaluation and Charts

UK economic system expands by 0.2% in January,GBP/USD stays under 1.2800.FTSE 100 bumping into multi-month resistance.

​Most Learn: British Pound Newest: UK Labor Market Cools, GBP Steadies, FTSE 100 Probes Increased

In response to the newest Workplace for Nationwide Statistics knowledge, the UK economic system expanded by 0.2% in January, however contracted by 0.1% within the three-month interval to January 2024. UK GDP can also be estimated to have fallen by 0.3% in January 2024 in contrast with the identical month final yr.

Workplace for Nationwide Statistics Month-to-month GDP Estimate

GBP/USD is treading water after two days of losses. Cable hit a multi-month excessive of 1.2894 final Friday earlier than turning decrease this week, however losses stay restricted with first assist seen across the 1.2742 space. For the pair to push forward, final Friday’s excessive will should be reclaimed however this appears unlikely for the time being with commerce anticipated to stay on both aspect of 1.2800 within the short-term.

GBP/USD Day by day Value Chart

IG Retail knowledge exhibits 41.74% of merchants are net-long with the ratio of merchants brief to lengthy at 1.40 to 1.The variety of merchants net-long is 6.03% increased than yesterday and 1.30% decrease than final week, whereas the variety of merchants net-short is 8.33% decrease than yesterday and 1.22% decrease than final week.

We sometimes take a contrarian view to crowd sentiment, and the actual fact merchants are net-short suggests GBP/USD costs might proceed to rise.t

See How IG Shopper Sentiment Can Assist Your Buying and selling Choices

The latest FTSE 100 rally has stalled in early commerce immediately, unable to interrupt by way of an space of multi-month prior resistance. The CCI indicator exhibits the market as closely overbought and this studying will should be dialled again if the UK huge board is to maneuver increased. A confirmed break above resistance across the 7,767 space would deliver 7,937 again into play.

FTSE 100 Day by day Chart

What’s your view on the British Pound and the FTSE 100 – bullish or bearish?? You’ll be able to tell us through the shape on the finish of this piece or you possibly can contact the creator through Twitter @nickcawley1.