GBP vs USD (FX:GBPUSD) and doom

#FTSE #SP500

Back in 1985, the UK enjoyed what was probably the most recent “real” Prime Minister in Margaret Thatcher, along with the release of Dire Straits cracker of a tune, “Money for Nothing”. Quite aptly, it also marked the last time Sterling collapsed against the Dollar, finding itself at a bottom of 1.05, marginally above the most recent fall from grace.

This time around, obviously entirely due to the lack of a “proper” Prime Minister, along with anyone producing decent music, we’re not convinced bottom is “in” for the GBPUSD relationship.

 

From our perspective, the problem comes from the pairing reaching 1.03x (the exact number varies depending on which platform data is taken from). From a Big Picture perspective, we’ve been expecting 1.01, perhaps even 0.99 as “bottom”. Perhaps it shall be the case residual strength in Sterling is presenting itself as capable of a solid bounce but, this being the case, movements in the last couple of days fail to inspire us with any confidence. In theory, the bounce should have ensured the pairing CLOSED Monday above 1.088 but despite briefly exceeding such a level, failed to close in relative safety. As a result, we suspect the agony may not be over for the UK Pound.

Maybe the UK Government needs rush out pound coins with the new Kings likeness stamped on them. That’ll do it! Or maybe not.

From a near term perspective, if weakness is indeed hiding within the pair, below 1.0610 looks capable of reversal to 1.0402 with secondary, if broken, down at 1.0160 from a near term perspective. Strangely, this is extremely close to 0.9986, the bottom the Big Picture almost demands must provide a bounce.

 

In the event the relationship manages above Mondays “spike” high of 1.095, there is apparently an encouraging potential of recovery to an initial 1.1353 with secondary, if beaten, at 1.2184.

Unfortunately, we feel duty bound to now mention Sterling is trading in a quite absurd area, one where we are allowed to mention 0.65 as the “ultimate” bottom.

FUTURES

Time Issued Market Price At Issue Short Entry Fast Exit Slow Exit Stop Long Entry Fast Exit Slow Exit Stop Prior
10:39:27PM BRENT 84.59 Success
10:40:53PM GOLD 1629.26
10:42:43PM FTSE 6975 6954 6932 6886 6982 6981 6995 7015 6955
10:44:42PM STOX50 3326.5 Shambles
10:47:35PM GERMANY 12109 ‘cess
10:49:36PM US500 3652.37 3621 3606 3569 3660 3672 3678 3697 3656 Shambles
10:52:05PM DOW 29176.5 Success
10:54:20PM NASDAQ 11278 Shambles
10:56:36PM JAPAN 26421

 

27/09/2022 FTSE Closed at 6984 points. Change of -0.51%. Total value traded through LSE was: £ 6,923,595,633 a change of 5.34%
26/09/2022 FTSE Closed at 7020 points. Change of 0.03%. Total value traded through LSE was: £ 6,572,681,049 a change of 1.53%
23/09/2022 FTSE Closed at 7018 points. Change of -1.97%. Total value traded through LSE was: £ 6,473,438,666 a change of 23.11%
22/09/2022 FTSE Closed at 7159 points. Change of -1.08%. Total value traded through LSE was: £ 5,258,363,393 a change of -10.68%
21/09/2022 FTSE Closed at 7237 points. Change of 0.63%. Total value traded through LSE was: £ 5,887,379,129 a change of 9.29%
20/09/2022 FTSE Closed at 7192 points. Change of -0.61%. Total value traded through LSE was: £ 5,386,737,074 a change of -59.64%
16/09/2022 FTSE Closed at 7236 points. Change of -100%. Total value traded through LSE was: £ 13,346,961,271 a change of 0%

SUCCESS above means both FAST & SLOW targets were met. ‘CESS means just the FAST target met and probably the next time it is exceeded, movement to the SLOW target shall commence.

Our commentary is in two sections. Immediately below are today’s updated comments. If our commentary remains valid, the share can be found in the bottom section which has a RED heading. Hopefully, this will mean you no longer need to flip back through previous reports. HYPERLINKS DISABLED IN THIS VERSION

Please remember, all prices are mid-price (halfway between the Buy and Sell). When we refer to a price CLOSING above a specific level, we are viewing the point where we can regard a trend as changing. Otherwise, we are simply speculating on near term trading targets. Our website is www.trendsandtargets.com.

UPDATE. We often give an initial and a secondary price. If the initial is exceeded, we still expect it to fall back but the next time the initial is bettered, the price should continue to the secondary. The converse it true with price drops.

We can be contacted at info@trendsandtargets.com. Spam filters set to maximum so only legit emails get through…

Section One – Outlook Updated Today. Click here for Section Two – Outlook Remains Valid shares

Click Epic to jump to share: LSE:BDEV Barrett Devs** **LSE:BT.A British Telecom** **LSE:IGAS Igas Energy** **LSE:ITV ITV** **LSE:MKS Marks and Spencer** **LSE:NG. National Glib** **LSE:OCDO Ocado Plc** **LSE:PHP Primary Health** **LSE:PPC President Energy** **LSE:SBRY Sainsbury** **LSE:SDY Speedyhire** **LSE:TRN The Trainline** **LSE:TW. Taylor Wimpey** **

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Updated charts published on : Barrett Devs, British Telecom, Igas Energy, ITV, Marks and Spencer, National Glib, Ocado Plc, Primary Health, President Energy, Sainsbury, Speedyhire, The Trainline, Taylor Wimpey,

LSE:BDEV Barrett Devs Close Mid-Price: 360.3 Percentage Change: -6.46% Day High: 391.3 Day Low: 361.4

Target Met. This is quite bad and now on the edge of troubling times. Weak ……..

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LSE:BT.A British Telecom Close Mid-Price: 125.55 Percentage Change: -1.68% Day High: 128.6 Day Low: 125.3

Weakness on British Telecom below 125 will invariably lead to 123 with sec ……..

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LSE:IGAS Igas Energy Close Mid-Price: 60 Percentage Change: -14.53% Day High: 70 Day Low: 54

Currently a little dodgy, below 54 now looks capable of 39 and hopefully a ……..

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LSE:ITV ITV Close Mid-Price: 58.6 Percentage Change: -2.27% Day High: 61.86 Day Low: 58.8

In the event ITV experiences weakness below 58, it calculates with a drop ……..

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LSE:MKS Marks and Spencer Close Mid-Price: 102.3 Percentage Change: -0.68% Day High: 106.8 Day Low: 102.1

Continued weakness against MKS taking the price below 102 calculates as le ……..

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LSE:NG. National Glib Close Mid-Price: 948.2 Percentage Change: -4.05% Day High: 991.6 Day Low: 953.8

Target Met. If National Grid experiences continued weakness below 953, it ……..

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LSE:OCDO Ocado Plc Close Mid-Price: 541.2 Percentage Change: -2.70% Day High: 572.2 Day Low: 539.8

Weakness on Ocado Plc below 539 will invariably lead to 515 with secondary ……..

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View Previous Ocado Plc & Big Picture ***

LSE:PHP Primary Health Close Mid-Price: 110.2 Percentage Change: -5.41% Day High: 120 Day Low: 110.3

Target Met. Now below 110 looks capable of 106 next. If broken, it almost ……..

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View Previous Primary Health & Big Picture ***

LSE:PPC President Energy Close Mid-Price: 0.88 Percentage Change: -22.22% Day High: 1.15 Day Low: 0.88

Target Met. This feels like it successfully shot itself in the foot. Now b ……..

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View Previous President Energy & Big Picture ***

LSE:SBRY Sainsbury Close Mid-Price: 189.1 Percentage Change: -1.23% Day High: 194.4 Day Low: 189.45

If Sainsbury experiences continued weakness below 189, it will invariably ……..

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View Previous Sainsbury & Big Picture ***

LSE:SDY Speedyhire Close Mid-Price: 37.05 Percentage Change: -1.20% Day High: 38.7 Day Low: 37.35

In the event Speedyhire experiences weakness below 37 it calculates with a ……..

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View Previous Speedyhire & Big Picture ***

LSE:TRN The Trainline Close Mid-Price: 302 Percentage Change: -4.58% Day High: 322.1 Day Low: 296.7

In the event of The Trainline enjoying further trades beyond 400, the shar ……..

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View Previous The Trainline & Big Picture ***

LSE:TW. Taylor Wimpey Close Mid-Price: 88.92 Percentage Change: -7.22% Day High: 97.24 Day Low: 89.48

Target Met. This is getting really bad as weakness below 89 now allows for ……..

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View Previous Taylor Wimpey & Big Picture ***

*** End of “Updated Today” comments on shares.

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