Forex Market: GBP/USD trading outlook for May 9th

Written by Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: October 30, 2024

Friday’s trade saw GBP/USD within the range of 1.4415-1.4543. The pair closed at 1.4430, shedding 0.39% on a daily basis. It has been the 16th drop in the past 31 trading days and also a fourth consecutive one. The daily low has been the lowest level since April 25th, when a low of 1.4400 was registered. In weekly terms, GBP/USD lost 1.25% of its value during the current week. It has been the 8th drop in the past 18 weeks and also the steepest one since the week ended on March 27th. The major pair has increased its slump to 1.25% so far during the current month, following two consecutive months of advance. In April it went up 1.75%.

No relevant macroeconomic reports and other events, which may influence GBP/USD trading, are scheduled on Monday (May 9th).

Correlation with other Majors

Taking into account the business week ended on May 6th and the daily closing levels of the major currency pairs, we come to the following conclusions in regard to the strength of relationship:

GBP/USD to NZD/USD (0.9989, or very strong)
GBP/USD to AUD/USD (0.9901, or very strong)
GBP/USD to EUR/USD (0.8326, or very strong)
GBP/USD to USD/CHF (-0.7437, or strong)
GBP/USD to USD/JPY (-0.8679, or very strong)
GBP/USD to USD/CAD (-0.9800, or very strong)

1. During the examined period GBP/USD moved almost equally in one and the same direction with EUR/USD, AUD/USD and NZD/USD. This relationship has been the most pronounced between GBP/USD and NZD/USD, with the correlation between these two majors being almost perfect.

2. GBP/USD moved almost equally in the opposite direction compared to USD/JPY and USD/CAD during the week. This relationship has been the most pronounced between GBP/USD and USD/CAD, with the correlation between the two major pairs being almost perfect.

3. GBP/USD moved strongly in the opposite direction compared to USD/CHF during the period in question.