GBPUSD SHORT (Feb, 2021) LARGE Weekly SELL ZONE

Macro Currency Strength = Short Bias
GBP = -7
USD = 28

Net GDP Growth Diff = Short Bias
-2.5% (2022 forecast from IMF)

GBPUSD vs WTI = Long Bias
78% positive correlation, WTI is rising as of recent, therefore long bias

GBPUSD vs FORD = Long Bias
68% positive correlation, Ford is longing, therefore long bias

Interest Rate Differential = Short Bias
GBP vs USD IR% = -0.15%

Market Conditions = Short
NHFOI (Net Hedge Fund Open Interest) Differential is dropping on GBP vs USD

Technicals = Short
In a large weekly sell zone

"One of the key things about 2021 in the UK is that there's a huge vaccine programme being rolled out. This is to help tackle the on-going battle with the virus and at the same time get the economy in a a normal place again. It was forecast by the BoE that the first Q1 would be a contraction of 4% in the UK but as vaccines are rolled out, infections decrease and people start spending during spring we're expecting a bounce back in the economy.

On top of this one of the key indicators was the Bank's Monetary policy committee (MPC) kept interest rates in the UK at 0.1%. However, at the same time they've asked High Street Banks (Commercial banks) to be ready for negative interest rates...

  • Negative Interest Rates?!
    BuT WHaT aBOuT mY SAVInGs...


Well ladies and gentlemen... that's why we all need to start learning about ways of investing our money. We're no longer in an interest rate environment with risk-free high returns on your savings, the negative interest rates will force consumers to spend, save less and invest more.

Lower interest rates also mean... a potentially lower currency value." - Logikfx blog
Beyond Technical AnalysisFundamental AnalysisgbpusdshortlogikfxTrend Analysis

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