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21 Jun 2013
GBP/USD sideways
FXstreet.com (Barcelona) - GBP/USD is resting between 1.5494 and 1.5477 after taking a hit on the European open to trade below 1.5500.
GBP/USD dropped from 1.5531 to 1.5473 where traders were reminded of the value in better UK fundamentals of late, attracting bids. Yesterday the market was surprised with much better than expected UK data. Retail Sales came in much better than expected, at 1.9% vrs 0.2% expected (YoY) for May and 2.1% vrs 0.8% expected month on month. These numbers will have benefitted from the 4% month on month plunge in food store sales, warmer weather and corporate result for May, with a push higher in the services PMI rebound story. And previously we had seen an uptick in CPI as well. The market awaits Carney for a direction on BoE.
GBP/USD looking bearish
The daily RSI has diverged, and the 55d ma at 1.5377 is the next target. Karen Jones, Analyst at Commerzbank said that rallies should now find resistance at 1.5555/1.5680 ahead of Thursday’s 1.5736 high and the 1.5782 61.8% retracement of this years move, 1.5794 200 week moving average is also located here and in all represent a tough band of resistance.
GBP/USD dropped from 1.5531 to 1.5473 where traders were reminded of the value in better UK fundamentals of late, attracting bids. Yesterday the market was surprised with much better than expected UK data. Retail Sales came in much better than expected, at 1.9% vrs 0.2% expected (YoY) for May and 2.1% vrs 0.8% expected month on month. These numbers will have benefitted from the 4% month on month plunge in food store sales, warmer weather and corporate result for May, with a push higher in the services PMI rebound story. And previously we had seen an uptick in CPI as well. The market awaits Carney for a direction on BoE.
GBP/USD looking bearish
The daily RSI has diverged, and the 55d ma at 1.5377 is the next target. Karen Jones, Analyst at Commerzbank said that rallies should now find resistance at 1.5555/1.5680 ahead of Thursday’s 1.5736 high and the 1.5782 61.8% retracement of this years move, 1.5794 200 week moving average is also located here and in all represent a tough band of resistance.