GBP/USD may see a correction soon

By FXstreet.com | July 29, 2014 AAA

FXStreet (Moscow) - GBP/USD opened the day at 1.6981, hesitated in Asia, but moved lower in European open reaching 1.6966 by the moment.



Nothing is lost



The pound is still not moving, although the correction after such a long string of selling could be logical. The market just stopped to believe the British economy is gathering pace, and recent reports did a lot to confirm this notion. However, nothing is lost for the pound, and even the scheduled for release today second-tier data may revive the hope again. For example, pay attention to the mortgage approval number as the housing data is scrutinized by the BOE in order to prevent any bubbles evolving. If the readings come above expectations, it may support the interest to the pound again.



What are today’s key GBP/USD levels?



Today's central pivot point can be found at 1.6986, with support below at 1.6969, 1.6956 and 1.6939 with resistance above at 1.6999, 1.7016, and 1.7029. Hourly Moving Averages are bearish, with the 200SMA at 1.7048, and the daily 20EMA bearish at 1.7052. Hourly RSI is bearish at 34.



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