Monday, October 3, 2022

Last Minute: Pound is Preparing for Blackout!

The British Pound is losing ground, plus we are seeing a stronger dollar. Such a combination leads to an even deeper decline in the GBPUSD pair. In the case of the pound, the weakening is a result of plans the British government is making in January for a “blackout”. Worst case indicates that in the worst frost conditions, electricity and gas supply can be disrupted for up to 4 days, leading to rationing not only in the industry but also in households. Interestingly, more rate hikes are expected in the UK in the coming months, which does not bode well when coupled with industrial stagnation. It looks like a recession is coming in the UK (recent BoE forecasts indicate a slowdown in 5 quarters, starting in Q4).

In addition, the British faced a huge increase in their electricity bills. Bills are expected to rise from around £2,000 a year, which is paid now, to over £4,200 per year the following year.

Last Minute: Pound is Preparing for Blackout!

The pound is taking huge losses after the above information came out. Source: xStation5

Last Minute: Pound is Preparing for Blackout!GBPUSD is trading below its 50 period moving average on the H4 chart. This average often provided significant resistance and support. Source: xStation5

This guide is provided for general information and marketing purposes only. No opinion, analysis, price or other material shall constitute investment advice or recommendation within the meaning of the Law on Trading of Financial Instruments dated July 29, 2005. Past performance is not necessarily indicative of future results, and anyone acting on this information does so at their own risk. XTB will not accept liability for any loss or damage, including, but not limited to, any loss of profit, which may arise directly or indirectly from the use or reliance on such information. CFDs are complex instruments and are associated with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can take the high risk of losing your money.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -