Forex: GBP/USD - UK M4 Money Supply And Mortgage Approvals Came In Better Than Expected!

The British Pound (GBP) Indicated Increasing Bearish Sentiment

Relevance up to 15:00 2022-08-31 UTC+2

The GBP/USD pair rebounded but the price action signaled exhausted buyers already. The price increased a little only because the Dollar Index was in a corrective phase in the short term. It was trading at 1.1704 at the time of writing and it seems under strong bearish pressure.

Fundamentally, the UK M4 Money Supply and the Mortgage Approvals came in better than expected while the Net Lending to Individuals was reported at 6.5B below 6.6B expected. On the other hand, the US HPI and the S&P/CS Composite-20 HPI came in worse than expected.

Later, the US CB Consumer Confidence is expected at 97.6 points while the JOLTS Job Openings could be reported at 10.37M.

GBP/USD Flag Formation!

Technically, the pair rebounded after its massive drop. The price action developed an up-channel pattern that could announce a downside continuation. Now, it is challenging the uptrend line and it could reach the 1.1685 static support as well.

Staying above these downside obstacles may signal new bullish momentum. It remains to see how it will react after the US high-impact data.

GBP/USD Forecast!

A valid breakdown below the uptrend line and through the 1.1685 may signal a deeper drop. Dropping, closing, and stabilizing below the S1 (1.1670) could bring short opportunities.

Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.


Source: Forex Analysis & Reviews: GBP/USD: bearish pattern in play

The British Pound (GBP) Indicated Increasing Bearish Sentiment

InstaForex Analysis

Instant Trading EU Ltd. is the CFD broker regulated by CySec with license number 266/15.


Besides CySEC, Instant Trading EU Ltd. is also supervised by the Czech National Bank (CNB), the Slovak National Bank (SNB), and the Polish Financial Supervision Authority (KNF). Consequently, InstaForex has branches in the Czech Republic, Slovakia, and Poland, where it provides support in local languages. InstaForex is a member of the Investor Compensation Fund (I.C.F) which is an additional security for the client's funds. Besides, the broker ensures the Negative balance protection. So, the reliability and trustworthiness of this broker raise no doubts.


Instaforex offers access to more than 2,500 instruments (Stocks CFDs, ETFs, IPOs, Indices, Commodities, Forex, Cryptocurrencies, US Synthetic Stocks) and the MT4 and MT5 platforms, trading accounts in EUR, USD, PLN, CZK, GBP.


More information at:

Follow InstaForex on:

Twitter | LinkedIn