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Forex pairs in this Article » GBP/USD
FXstreet.com (Barcelona) - The GBP/USD is very slightly lower on the session early Monday as even the DXY strength late Friday has not yet dampened the GBP/USD bulls’ enthusiasm.

GBP/USD traders to focus light data flow this week for guidance

The situation entering this week is that experts are assigning “top prospect” status to the British economy and are still raising a skeptic’s eye to the Fed’s willingness to take their foot off the QE gas pedal in a more aggressive manner. That combination of factors explains why the GBP/USD is apparently reticent to correct lower. We shall see if this week and the new year brings more conviction to the US side of that equation.

The data that may affect the DXY this week include:

• Monday – British Nationwide Housing Prices; US Pending Home Sales; US Dallas Fed Manufacturing Index
• Tuesday – US Chicago Purchasing Managers Index; US Consumer Confidence
• Wednesday – New Years Day holiday
• Thursday – British Manufacturing PMI; US PMI; US Weekly Jobless Claims; US Construction Spending; US Prices Paid
• Friday – British Consumer Credit; British Mortgage Approvals; BOE Credit Conditions Survey; British Net Lending to Individuals; British Construction PMI; and, the US ISM New York Index

Technical outlook for GBP/USD

Technicians say that GBP/USD may be trying to top and that a corrective move lower to 1.6089 could take place. The obvious resistance for GBP/USD comes in at Wednesday’s high of 1.6483. Initial support comes in at Tuesday’s intraday low of 1.6216 but the more meaningful targets start at 1.6089 and continue all the way down to 1.5456.
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