Back
16 Aug 2013
GBP/USD hangs on to 1.5600 zone despite magnetic gravity pull
FXstreet.com (Chicago) - GBP/USD accumulates 0.16% daily losses after a stellar performance on Thursday evening and Friday’s morning at the Asian opening. Amid speculations on Fed’s tapering and post manufacturing data, the pair extends steady decline in the afternoon of the American trading session.
Weaker than expected data
In the US, housing starts for July (MoM) failed to meet expectations at 0.900M to settle for 0.896M. Similarly, building permits fell short to match 0.945M as the results were 0.943M. The Reuters/Michigan Consumer Sentiment Index was 80.0 vs. estimates at 85.5 indicating last week’s bullish momentum may have been more compulsive than based on empiricism. In the UK, the pound strengthened throughout the week to print 0.75% gains so far and accumulate 2.99% this month.
Technical Levels
Price action indicates the pair seems to be on a corrective price channel as it is not increasing at the spiking rates reached during the early morning Asian session. Trading at 1.5612, the pair oscillates between supports at 1.5607 (August 8th highs), 1.5558 (August 10th highs) ahead of 1.5515 (June 19th lows) and resistances at 1.5684 (June 19th highs), 1.5717 (June 12th highs) followed by 1.5750 (June 16th highs). The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis with a neutral EMA20 and a Momentum indicator pointing up despite having lost 0.15% this past hour.
Weaker than expected data
In the US, housing starts for July (MoM) failed to meet expectations at 0.900M to settle for 0.896M. Similarly, building permits fell short to match 0.945M as the results were 0.943M. The Reuters/Michigan Consumer Sentiment Index was 80.0 vs. estimates at 85.5 indicating last week’s bullish momentum may have been more compulsive than based on empiricism. In the UK, the pound strengthened throughout the week to print 0.75% gains so far and accumulate 2.99% this month.
Technical Levels
Price action indicates the pair seems to be on a corrective price channel as it is not increasing at the spiking rates reached during the early morning Asian session. Trading at 1.5612, the pair oscillates between supports at 1.5607 (August 8th highs), 1.5558 (August 10th highs) ahead of 1.5515 (June 19th lows) and resistances at 1.5684 (June 19th highs), 1.5717 (June 12th highs) followed by 1.5750 (June 16th highs). The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis with a neutral EMA20 and a Momentum indicator pointing up despite having lost 0.15% this past hour.