22 Jul 2015
GBP/USD digging in to the downside
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5592 with a high of 1.5648 and a low of 1.5549.
GBP dropped from the 1.5620 support and has been down to test the bulls commitments from the hawkish comments from the BoE and MPC members and BoE minutes while the greenback stages a broad based recovery.
Sterling got an early European bid on the back of the David Miles and his comments while the BoE minutes were hawkish later in the day continuing to support cable despite the greenback's strength and recovery across the board. However, GBP/USD finally found offers on the back of supply that arrived at 1.5640, 1.5615 and less committed bears at 1.55 the figure. From the US, house price data was the only data event available to note with the index for May moM coming in line with previous of 0.4% while existing homes change MoM for June arrived at 3.2%, lower than 4.5% previous but beating expectations of 1.2%. In the same hour, Barclay's have revised their forecast for Q2 GDP for the US to 3.0% from 2.55 previous while the analysts there expect a pick up in consumer spending and residential investment.
GBP/USD has been digging out the 1.5640/70 support area (Fib 38.2% on June rally) and has been testing the previously strong resistances of the 200dma that it broke on the July 10 and the 38.2% long-term Fibonacci level and the 50dma that it broke on July 14. For a convincing break to the downside, 1.55 is a psychological level ahead of Initial target is the 200 day ma at 1.5413
and July lows of 1.5332. above 1.57 sets a bullish trend in place for May and June highs through 1.58.
GBP dropped from the 1.5620 support and has been down to test the bulls commitments from the hawkish comments from the BoE and MPC members and BoE minutes while the greenback stages a broad based recovery.
Sterling got an early European bid on the back of the David Miles and his comments while the BoE minutes were hawkish later in the day continuing to support cable despite the greenback's strength and recovery across the board. However, GBP/USD finally found offers on the back of supply that arrived at 1.5640, 1.5615 and less committed bears at 1.55 the figure. From the US, house price data was the only data event available to note with the index for May moM coming in line with previous of 0.4% while existing homes change MoM for June arrived at 3.2%, lower than 4.5% previous but beating expectations of 1.2%. In the same hour, Barclay's have revised their forecast for Q2 GDP for the US to 3.0% from 2.55 previous while the analysts there expect a pick up in consumer spending and residential investment.
GBP/USD has been digging out the 1.5640/70 support area (Fib 38.2% on June rally) and has been testing the previously strong resistances of the 200dma that it broke on the July 10 and the 38.2% long-term Fibonacci level and the 50dma that it broke on July 14. For a convincing break to the downside, 1.55 is a psychological level ahead of Initial target is the 200 day ma at 1.5413
and July lows of 1.5332. above 1.57 sets a bullish trend in place for May and June highs through 1.58.