20 Aug 2013
GBP/USD firmer around 1.5670
FXstreet.com (Athens) - Despite another day seemingly devoid of noteworthy data from Europe or UK, the ‘cable’ is moving on the upwards path, as evidenced by a waning DXY for the second consecutive session.
Pre-FOMC volatility has already picked up - and its hurting the US Dollar
Chicago Fed National Activity index came across the board in European trading session, disappointing investors (-0.15 versus -0.10 expected, from -0.23 the previous one). Ahead in the week, U.S housing data, the FOMC meeting minutes and unemployment claims are the major events. The Fed will release its FOMC meeting minutes from the July 30-31 meeting tomorrow, with the market still uncertain of the Fed’s QE tapering schedule. Therefore, in the absence of data from Europe or North America, traders have been honed in on QE3, i.e. whether or not, the ‘tapering’ will come to fruition in September. As Wednesday is coming, risk-aversion is picking up, influencing the pair’s trend.
Technical outlook on GBPUSD
The cable is consolidating right around 1.5672 area . Since the middle of June the pound has fallen very strongly from the resistance level at 1.5700 back down, towards the long term key level at 1.5000 and is now enjoying a solid recovery over the last month or so. The FXstreet.com Trend Index shows the pair to be slightly bearish. Daily pivot point support can be found at 1.5628, 1.5589, 1.5550, and resistance at 1.5694,1.5733 and 1.5772, respectively.
Pre-FOMC volatility has already picked up - and its hurting the US Dollar
Chicago Fed National Activity index came across the board in European trading session, disappointing investors (-0.15 versus -0.10 expected, from -0.23 the previous one). Ahead in the week, U.S housing data, the FOMC meeting minutes and unemployment claims are the major events. The Fed will release its FOMC meeting minutes from the July 30-31 meeting tomorrow, with the market still uncertain of the Fed’s QE tapering schedule. Therefore, in the absence of data from Europe or North America, traders have been honed in on QE3, i.e. whether or not, the ‘tapering’ will come to fruition in September. As Wednesday is coming, risk-aversion is picking up, influencing the pair’s trend.
Technical outlook on GBPUSD
The cable is consolidating right around 1.5672 area . Since the middle of June the pound has fallen very strongly from the resistance level at 1.5700 back down, towards the long term key level at 1.5000 and is now enjoying a solid recovery over the last month or so. The FXstreet.com Trend Index shows the pair to be slightly bearish. Daily pivot point support can be found at 1.5628, 1.5589, 1.5550, and resistance at 1.5694,1.5733 and 1.5772, respectively.