Performing forex market analysis is important to ensure that we understand the market sentiment to help us place the most optimum trades. Here is how the GBPUSD market has been moving from 2008 to the present time.
GBPUSD Chart Analysis
It is important to understand the GBPUSD chart in a higher timeframe, especially if you’re planning on holding a position for a longer term. The chart below will show you how the GBPUSD market has been behaving from 2008 to 2022. Let’s get into more detail about it.
As you can see in the chart above, the market has been in a slight downtrend. This is evident from the fact that the old support levels have become new resistance levels. The support levels used in the period from 2008 to 2015 have been reassigned to the roles of resistance levels in 2015 and above.
We can also notice another trend in this chart. As you can see, there are several mountain formation chart patterns. The market is popular for facing a push that makes its levels sharply increase before falling back down to the baseline. Over time, it has gone below the base levels.
Factors Impacting the GBPUSD Markets
Behind every movement in the forex markets, there is a reasoning behind it. This also applies to the GBPUSD chart, which is only presenting this trend as a result of some economic, political, or monetary conditions that are impacted both the United Kingdom and the United States.
One of the main things to keep in mind was that during the period between 2008 and 2015, the UK has been the top destination around the world. People would come from all over the world to reside, study, and travel in the UK. It is also important to note that this was a very political period for the US as they have been involving themselves in an anti-terrorism battle with Afghanistan.
If we go a little ahead and look at the period after 2015 to 2022, there have been a number of factors that have caused the market sentiment you are currently witnessing. This was a period where Brexit was first decided and then later implemented. Brexit is the separation of the UK from the EU. Another important event that took place during this time in the US was the fact that Donald Trump served as president during this time which caused havoc in the country.
When discussing the future of the GBPUSD markets, there are a few factors we have to keep in mind. The main one is that both the UK and the US are looking to face a recession by the end of the year. This is mainly due to the rising inflation around the world which is causing the cost of living to become unbearable for the majority of the people.
However, it is also due to the ongoing war between Russia and Ukraine which is causing uncertainty in the supply chains for energy resources and other basic necessities. We predict that the market may show a slight increase in the short term however, we should lean towards a downtrend in the future.