2 Sep 2013
GBP/USD creeps north; target at 1.56
FXstreet.com (Chicago) - GBP/USD has strengthened 0.46% so far after price action reveals two runaway gaps within hours ahead of UK manufacturing data on US national holiday.
Syrian conflict recap, UK results
Last week, the US lost one of its main allies for a military strike against Syria after the House of Commons refused to support Prime Minister David Cameron to send British troops to the Middle East. The US administration stated “undeniable” chemical attack killed over 1,300 civilians on the previous week and affirmed American intelligence organizations had proofs involving President Bashar Al- Assad. Over the weekend, the UN said the organization needed at least 2 weeks to assess whether or not the Middle Eastern country had violated the Geneva Convention banning the use of such weapons. Moreover, President Obama decided to seek lawmakers’ approval before taking action against Syria, appeasing risk aversion behavior for the moment.
Lee Hopley, chief economist at the UK’s EEF said that “while the signs of (economic) recovery that have emerged so far this year are positive, the need for better-balanced growth from net trade and investment remains a necessity” after publishing the results of over 24 companies to measure capital investments in the country. According to Reuters, the results demonstrated that “a balance of 24 percent of companies intended to buy machinery and equipment, up from 7 percent in the May poll.”
GBP/USD Technical Levels - Too fast and too heavy to be captured
Price action reveals two runaway gaps so far on formidable upleg triggered by better-than-expected Chinese data ahead of manufacturing data in the UK. At 1.5558, the pair navigates between supports at 1.5544 (August 14th highs), 1.5517 (August 12th highs) ahead of 1.5480 (August 24th lows) and resistances at 1.5572 (August 8th highs), 1.5605 (August 25th highs) followed by 1.5635 (August 22nd highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and is offered above the EMA20. The US markets will be closed Monday on Labor day holiday.
Syrian conflict recap, UK results
Last week, the US lost one of its main allies for a military strike against Syria after the House of Commons refused to support Prime Minister David Cameron to send British troops to the Middle East. The US administration stated “undeniable” chemical attack killed over 1,300 civilians on the previous week and affirmed American intelligence organizations had proofs involving President Bashar Al- Assad. Over the weekend, the UN said the organization needed at least 2 weeks to assess whether or not the Middle Eastern country had violated the Geneva Convention banning the use of such weapons. Moreover, President Obama decided to seek lawmakers’ approval before taking action against Syria, appeasing risk aversion behavior for the moment.
Lee Hopley, chief economist at the UK’s EEF said that “while the signs of (economic) recovery that have emerged so far this year are positive, the need for better-balanced growth from net trade and investment remains a necessity” after publishing the results of over 24 companies to measure capital investments in the country. According to Reuters, the results demonstrated that “a balance of 24 percent of companies intended to buy machinery and equipment, up from 7 percent in the May poll.”
GBP/USD Technical Levels - Too fast and too heavy to be captured
Price action reveals two runaway gaps so far on formidable upleg triggered by better-than-expected Chinese data ahead of manufacturing data in the UK. At 1.5558, the pair navigates between supports at 1.5544 (August 14th highs), 1.5517 (August 12th highs) ahead of 1.5480 (August 24th lows) and resistances at 1.5572 (August 8th highs), 1.5605 (August 25th highs) followed by 1.5635 (August 22nd highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and is offered above the EMA20. The US markets will be closed Monday on Labor day holiday.