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6 Aug 2013
GBP/USD holding strong after Friday’s rally and ahead of GDP data
FXstreet.com (Barcelona) - The British Pound / US Dollar cross (GBPUSD) hovered above the flat line early Tuesday and maintained its short-term bullish posture following Friday’s sharp rally. GDP data due out will be a short-term driver.
GBP/USD rallied on weak US jobs; Brits’ GDP next up
The GBP/USD cross rallied sharply on Dollar weakness following Friday’s jobs report in the US. The bullish tone carried over into Sunday night’s open and continued all the way until 10:00 GMT Monday where it peaked out at 1.5377. Since then, the cross has gone into a holding pattern as traders await British GDP estimates for the last quarter which are due out at 14:00 GMT. Prior to that, however, traders will also get industrial production, manufacturing production and house price data. Big surprises in ant of Tuesday’s data obviously has the power to move the GBP/USD hard in either direction.
GBP/USD technical outlook
The technical crowd is calling for a continued intermediate-term move lower in GBP/USD– at least down to 1.4800 (from 1.52687 currently). Shorter-term resistance for GBP/USD comes in at the 1.5405 short-term “correction resistance” and is followed by the 1.5435 macro “correction resistance”. Support for GBP/USD comes in at 1.5265 – the pivot low from Monday - and is followed by Friday’s low of 1.5102.
GBP/USD rallied on weak US jobs; Brits’ GDP next up
The GBP/USD cross rallied sharply on Dollar weakness following Friday’s jobs report in the US. The bullish tone carried over into Sunday night’s open and continued all the way until 10:00 GMT Monday where it peaked out at 1.5377. Since then, the cross has gone into a holding pattern as traders await British GDP estimates for the last quarter which are due out at 14:00 GMT. Prior to that, however, traders will also get industrial production, manufacturing production and house price data. Big surprises in ant of Tuesday’s data obviously has the power to move the GBP/USD hard in either direction.
GBP/USD technical outlook
The technical crowd is calling for a continued intermediate-term move lower in GBP/USD– at least down to 1.4800 (from 1.52687 currently). Shorter-term resistance for GBP/USD comes in at the 1.5405 short-term “correction resistance” and is followed by the 1.5435 macro “correction resistance”. Support for GBP/USD comes in at 1.5265 – the pivot low from Monday - and is followed by Friday’s low of 1.5102.