GBPSEK Forecast: Bearish Trend Dominates Market
In today’s comprehensive GBPSEK forecast, we will first scrutinize the current economic conditions in Sweden. Following that, we will meticulously delve into the details of the technical analysis pertaining to the GBPSEK pair.
Persistent Contraction in Sweden’s Service Sector
Reuters – In October 2023, Sweden’s Services PMI experienced a slight increase, moving from a slightly adjusted 46.1 to 48.5. Despite this rise, the sector remained in a contraction phase for the third consecutive month.
A Closer Look at the Figures
There were noticeable improvements in new orders, which rose to 47.1 from 43.4 in September, and business volumes, which increased to 47.2 from 45.8. However, both these figures stayed below the crucial 50 mark. On the other hand, employment continued its upward trend, reaching 55.9 from 51.3, marking the highest level since January. Conversely, delivery times saw a further decline, dropping to 45.2 from 46.1. When it comes to prices, input costs escalated to 59.2 from 58.8, a significant increase compared to the falling prices in the industry.
Swedbank PMI analyst, Jörgen Kennemar, commented on the situation, “The decline in PMI services has been less severe than in previous economic downturns, suggesting that Sweden’s service sector is resilient. However, we have yet to see the lowest point.”
GBPSEK Forecast: Technical View
The currency pair is currently trading below a bearish trendline, as observed in our daily chart analysis. This GBPSEK forecast indicates a bearish market sentiment, with the price lingering below the 13.384 pivot point. In addition to the Kernel channel, the Relative Strength Index (RSI) indicator also falls below the level of 50, further reinforcing the bearish outlook in our GBPSEK forecast.
According to the data derived from the chart, the market sentiment leans towards a bearish stance on GBPSEK. The bears have set their first target at the 13.3 support level. If this level breaks, the next target in our would be around the 13.0 area. However, this bearish forecast would be invalidated if the price breaks and stabilizes above the bearish trendline.
Stay tuned for more updates on the GBPSEK forecast.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.