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.
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