Investing: Correction after the British pound rally

14 November 2022 76
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Source: Investing

Author: Kenny Fisher

ArticleOriginal article

Publication date: Friday, November 11, 2022

 

The US dollar dropped on Thursday after the October inflation figures revealed that inflation had declined more than expected.

The UK economic figures on Friday were weaker but better than expected. GDP for the third quarter was -0.2% QoQ, compared to 0.2% in the second quarter. However, it exceeded the consensus forecast of -0.5%. Manufacturing production for September rose to zero, up from -1.6% in August and above the consensus forecast of -0.4%.

 

The British pound regained its fundamental positive at the end of last week and rose by 4.5% against the dollar.

Technically, the pound has reached its resistance levels of 1.1767 and 1.1844.

A corrective pullback to the support levels of 1.1609 and 1.1467 is likely now.

 

Forecast:

 

Sell GBP/USD amid the corrective pullback after last week's rally.

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