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Friday, August 28, 2015

British Pound Testing Yesterday Low



After three days of going down gbp/usd is testing yesterday’s low and it might hold this time. GB Gross Domestic Product data came out exactly as expected both annual and quarterly figures being the same as predicted. This did not stop cable from falling down. It rallied initially on the numbers, but later collapsed and is now breaking or trying to break 1.5370 level. We need to wait for hourly candle close to be surer whether the breakout is a convincing one or a false one. 

It seems to me that some profit taking on US dollar longs should be taken before the weekend and so we may see greenback giving up gains. Resistance is seen around even number of 1.5500. No more serious data is scheduled from Great Britain or US. Traders will watch numbers from Europe at 12:00 GMT when German Consumer Price Index data comes out. This will have more impact on eur/usd and possibly eur/gbp pair. I do expect Euro Pound pair to erase its gains after strong rising since 18th of August. 

US Personal Consumption Expenditure, Personal Income and Personal Spending come out at 12:30 GMT, but the data will probably not impact any of the above mentioned currencies much. 

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