In today’s comprehensive GBPSEK forecast, we will first examine the current economic conditions in Sweden. Then, we will meticulously delve into the details of the technical analysis of the GBPSEK pair.
Persistent Contraction in Sweden’s Service Sector
Bloomberg—In October 2023, Sweden’s Services PMI slightly increased 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 declined further, dropping to 45.2 from 46.1. Regarding 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, “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
Our daily chart analysis shows that the currency pair is trading below a bearish trendline. 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 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.