The British pound (GBP) today marked itself for 1.3365 against the US dollar with a red candle on the graph. The price movement of the pair has been pretty unstable during the past week.
There are various reasons for this volatility, and while they have gotten positive updates, they are insufficient to counteract the bad flow of GBP/USD currency pair price fluctuations.
First, there are the retail sales from National Statistics released October’s status on November 19 with -1.3% relative to the anticipation of economists that predicted it at -2%.
Retail sales are a measurement of the total receipts of retail stores. Monthly percentage changes show the pace of change in such sales. In general, a high value indicates that the GBP is bullish, whereas a low score indicates that the GBP is bearish.
Then came the IHS Markit Manufacturing PMI, which, according to FXStreet.com, stood at 58.2 this month compared to 57.8 the previous month.
Traders seek the greatest possible reading because it will be interpreted positively for the GBP. Any number above 50 indicates expansion, whereas any reading below 50 indicates contraction.
On the other side, the US Bureau of Economic Analysis will release gross domestic product on November 24, 2021. Economists predict that it might remain 2.1% in the third quarter of the year compared to last quarter reading of 2%.
The US GDP Annualized Figure Report represents the average value over time of commodities, products, and manufacturing systems manufactured within the US.
In other words, this represents the economic growth of the region, which relates to the period under review. Generally speaking, the bearish market for the GBP/USD pair indicates a better than the anticipated number, whereas a declining number suggests a bullish market for the pair ahead.
Selling the GBP/USD pair around current levels may be a worthwhile move in short to medium-term trading, considering the economic outlook of the pair over the past few days.