expand/collapse risk warning

CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Market Insights

Trading insight: Ride the trends and don’t fight the momentum

Copy of Blog Images - Skilling - 2023-05-16T095659.911

Market Talk

Screenshot 2023-05-16 095922 Source: Tradingview May 16 2023 6:43 UTC

The above chart illustrates the US100 index technical observations including:

  • Trend analysis: Current price is above all major moving averages, indicating a very strong uptrend, MACD above equilibrium signifies bullish trending conditions.
  • Momentum analysis: Relative Strength Index (RSI) is bullish since RSI is above 50 and sloping upward, indicating momentum has been increasing.

Commentary: Current price 13,400, resistance at 13,427 (13 week high). Prospects for further advance towards 13,744 and 14,552 can not be ruled out over the short to medium term (14-49 days). Downside risk spotted below the 12,765 key support.


Today’s economic calendar

Screenshot 2023-05-16 095949

The above chart illustrates US retail sales month on month with the latest forecast.

United States Retail Sales on deck today

  • Retail sales expected to show month on month increase

UK unemployment increased slightly, while average weekly earnings (AWE) increased by 5.8%

GBP FX Market reaction:

  • GBP weakened against the JPY, EUR, and USD following the latest UK employment report (see today’s economic calendar below for details)

Screenshot 2023-05-16 100022 Source: TradingView / J. Knobel May 16 2023 6:17 UTC


Trading bullets

GBP/USD bullish outlook, however, current price remains vulnerable to a further short term price correction.

  • GBP/USD current price 1.2490 for the very short term (5-13 days) appears to be in a price correction cycle from the March - May uptrend advance. Key support spotted near 1.2345 (see chart), while key resistance is at 1.2650. Above 1.2650 could trigger a resumption of the prevailing multi-month uptrend, while a break below the 1.2345 key support places the prevailing uptrend at risk.

Screenshot 2023-05-16 100144

Capitalise on volatility in Forex markets

Take a position on moving Forex prices. Never miss an opportunity.

Sign up

Not investment advice. Past performance does not guarantee or predict future performance.