British pound (GBP) price outlook
- BoE dep gov Broadbent sees “very rapid growth over the next few quarters”.
- The UK vaccination program is ahead.
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How to trade GBP / USD
Bank of England Vice President Bill Broadbent said over the weekend that the UK economy could record “very rapid growth over the next few quarters” fueled by further growth in consumer spending. Broadbent recommends that consumers save less and continue to spend the recently accumulated savings above the BoE’s official forecast of 5%, boosting the UK’s onset of recovery.
The last one EY ITEM Club Report now forecasts that the UK economy will grow by 6.8% in 2021 – the fastest rate since World War II – compared to the 5% growth recommended in their January forecast, bringing the UK ‘s highly successful vaccination program as a key driver of economic confidence. The report also predicts that unemployment in the UK will not be as bad as initially feared – 5.8% compared to the 7% forecast in January – the unemployment rate will fall to 4.5% by the end of next year.
According to the UK vaccination program, more than 46 million people – almost 65% of the UK population – have received at least one vaccination, while 12.5 million people have received two doses. The latest data also show deaths within 28 days of a positive test and a reduction in the number of hospital admissions.
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The daily chart shows that it is supportive in the medium term GBP / USD the trend line remains in place despite recent ones GBP/USD weakness. While this week’s UK economic calendar is quite light, the US dock is full of potentially market-affecting events and releases, and are the most likely cable drivers this week, starting at 12:30 GMT today.
See all economic data and events in the market in real time DailyFX calendar.
GBP / USD may test a recent set of higher peaks of just over 1.4000 if the current positive structure persists, while the support cluster is between 1.3800 and 1.3850.
GBP / USD daily price chart (October 2020 – April 26, 2021)
customers are network long.
customers are net short.
Retailer details show 53.64% of traders are net long, the ratio of traders to long and short is 1.16 to 1. Usually we view the contradictory situation of the crowd and the fact that traders are net long indicates a continuing decline in GBP / USD prices. Positioning is longer than yesterday, but less than last week. The combination of the current mood and recent changes gives us even more mixed GBP / USD trading bias.
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What is your view GBP / USD – bullish or bearish ?? You can notify us via the form at the end of this section or you can contact the author Twitter @ nickcawley1.