CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

GBP/USD

Market Opportunities - 19/09/2022

19 September, 2022

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

GBP/USD weekly downtrend opportunity based On 1.00 Lot Calculation:

  • EVENT (SEPTEMBER 21, WEDNESDAY AT 19:00 GMT+1): US FEDERAL RESERVE (FED) INTEREST RATE DECISION. PRESS CONFERENCE AT 19:30 GMT+1. The FED is expected to raise their benchmark interest rate by 75 basis points from current 2.50% TO 3.25%, although some market participants think the Fed may go for a 1%-point interest rate hike to 3.50%. Interest rates are expected to go up due to rising inflation in the US, stands currently at of 8.5%.
  • EVENT (SEPTEMBER 22, THURSDAY AT 12:00 GMT+1): BANK OF ENGLAND INTEREST RATE DECISION. The Bank of England is expected to raise their benchmark interest rate by 50 basis points from current 1.75% to 2.25%, although some market participants think the Bank of England may go for a 0.75%-point interest rate hike to 2.50%.
  • US- UK INTEREST RATES DIFFERENTIALS IN FAVOUR OF THE US DOLLAR: The interest rates (FED) in the US have gone up recently to 2.5%, while the benchmark interest rate in the UK has gone up to 1.75%. The difference between the two remains 0.75% points in favor of the US dollar, which makes the US dollar more attractive than the UK Pound. This could be another reason why the US dollar could continue strengthening against the UK Pound.
  • GBP/USD HIT ITS LOWES RATE SINCE 1985. The UK Pound continued to fall against the US dollar as the UK continued to approach a recessionary period that could start in Q4 of 2022 and potentially could last for five quarters. Meanwhile, Citigroup said that due to rising energy costs, the UK Inflation could reach 17% in 2023 and said that the GBP/USD could target the area between 1.05 and 1.10.

GBP/USD, September 19, 2022
Current Price: 1.1400

EUR/USD

Weekly

Trend direction

DOWN

Resistance 3

1.1700

Resistance 2

1.1600

Resistance 1

1.1550

Support 1

1.1240

Support 2

1.1150

Support 3

1.1000

Example of calculation base on weekly trend direction for 1.00 Lot1

GBP/USD

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

-3,000

-2,000

-1,500

1,600

2,500

4,000

Profit or loss in €2

-3,008

-2,005

-1,504

1,604

2,507

4,011

Profit or loss in £2

-2,638

-1,758

-1,319

1,407

2,198

3,517

Profit or loss in C$2

-3,993

-2,662

-1,997

2,130

3,328

5,324

1. 1.00 lot is equivalent of 100,000 units

2. Calculations for exchange rate used as of 09:06 (GMT+1) 19/09/2022

Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.

  • You may wish to consider closing your position in profit, even if it is lower than suggested one
  • Trailing stop technique can protect the profit – Ask your Client Manager for more detail
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