GBP/USD weekly special report based on 1 Lot Calculation:
UK:
- DOMESTIC RIOTS SET TO CONTINUE, HAVING A NEGATIVE IMPACT ON THE UK POUND (GBP). According to the BBC, the fatal stabbing of three young girls at a dance class in the seaside town of Southport, in the north of England, has been followed by the worst unrest the UK has seen in more than a decade. The violence, in towns and cities across England and in Northern Ireland, has been fuelled by misinformation online, the far-right and anti-immigration sentiment. The day after the Southport riot, violent protests in London, Hartlepool and Manchester broke out, which police linked to Southport. More took place throughout the week - with many targeting mosques and hotels housing asylum seekers.
- BANK OF ENGLAND CUT ITS INTEREST RATE FOR THE FIRST TIME IN FOUR YEARS. The Bank of England has already started the cycle of interest rate cuts in the UK, announcing the first cut of 25 baisis points on August 1. The bank’s benchmark interest rate was slashed down to 5.00% from previous 5.25%. The bank is expected to announce new cuts in the period to come, increasing the negative pressure on the UK Pound (GBP).
- EVENT (WEDNESDAY, AUGUST 14 AT 07:00 GMT+1): UK INFLATION (CPI). UK Inflation has recently fallen to the central bank’s target of 2.00%, which could fully justify further interest rate cuts by the Bank of England. Falling interest rates in the UK, could have negative impact on the UK Pound (GBP).
USA:
- EVENT (THURSDAY, AUGUST 8 AT 13:30 GMT+1): US INITIAL JOBLESS CLAIMS: The US will report its weekly initial jobless claims. Jobless claims have been rising, indicating a slowing job market.
- EVENT (WEDNESDAY, AUGUST 14 AT 13:30 GMT+1): US INFLATION (CPI). US Inflation fell to 3.00% in June, below the consensus estimate for 3.1%. If, however, US Inflation fails to continue falling, this could ignite new doubts, which in turn could have a positive impact on the US Dollar.
GEOPOLITICS:
- US DOLLAR TO REMAIN STRONG ON DEMAND DUE TO RISING TENSIONS IN THE MIDDLE EAST. Currencies, such as the US Dollar, rise in demand during rising geopolitical tensions. As tensions in the Middle East have risen recently, with market expecting Iran and their proxies to attack Israel, it could be expected demand for the US dollar to rise, which could put negative pressure on the GBP/USD currency pair.
GBP/USD, August 8, 2024
Current Price: 1.2710
|
GBP/USD |
Weekly |
|
Trend direction |
|
|
1.2900 |
|
|
1.2850 |
|
|
1.2810 |
|
|
1.2600 |
|
|
1.2500 |
|
|
1.2400 |
Example of calculation based on weekly trnd direction for 1 Lot1
|
GBP/USD |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
-1,900 |
-1,400 |
-1,000 |
1,100 |
2,100 |
3,100 |
|
Profit or loss in €2 |
-1,737 |
-1,280 |
-914 |
1,006 |
1,920 |
2,834 |
|
Profit or loss in £2 |
-1,496 |
-1,102 |
-787 |
866 |
1,653 |
2,441 |
|
Profit or loss in C$2 |
-2,610 |
-1,923 |
-1,373 |
1,511 |
2,884 |
4,258 |
1. 1.00 lot is equivalent of 100,000 units
2. Calculations for exchange rate used as of 08:30 (GMT+1) 08/08/2024
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.