24 Aug 2015
GBP/USD: Vigorous bounce off lows, bulls reclaim control?
FXStreet (Bali) - After being aggressively sold in the early going of the European session, London traders have come to the rescue of the Sterling, producing a vigorous and meritorious 40+ pips bounce off lows, testing the highest volume node of the day at 1.5775 from 1.5632 lows.
GBP/USD: CoT shows bullish readings
With risk version engulfing global markets, expect further volatile two-way business, with plenty of demand still expected, judging not only by the sharp bounce in the pair during the London open, but also judging by the latest CoT, where open interest up to last Tuesday saw total leverage accounts increasing upside business, while dealers and asset managers also offered bullish readings.
CBI upgrades UK growth
Another factor that may have contributed to see the rebound in the British Pound may be attributed to the latest growth prospects update by the Confederation of British Industry, which was upgraded to +2.6% vs +2.4% prev fo rthe current year, while in 2016, +2.8% vs +2.5% prev, noting lower inflation, rising wages and higher productivity as contributors to help boost consumer spending.
GBP/USD technicals
The strong recovery off lows has seen ST bulls reclaim control of prices, with the next now to stabilize the rate above 1.5655/60, a technical event that would allow a possible retest of 1.5675/80 European high, ahead of more ambitious upside targets at 1.5690/1.57, highest volume node of the day. On the downside, the loss of 1.5655/60 should see downward pressures resume.
GBP/USD: CoT shows bullish readings
With risk version engulfing global markets, expect further volatile two-way business, with plenty of demand still expected, judging not only by the sharp bounce in the pair during the London open, but also judging by the latest CoT, where open interest up to last Tuesday saw total leverage accounts increasing upside business, while dealers and asset managers also offered bullish readings.
CBI upgrades UK growth
Another factor that may have contributed to see the rebound in the British Pound may be attributed to the latest growth prospects update by the Confederation of British Industry, which was upgraded to +2.6% vs +2.4% prev fo rthe current year, while in 2016, +2.8% vs +2.5% prev, noting lower inflation, rising wages and higher productivity as contributors to help boost consumer spending.
GBP/USD technicals
The strong recovery off lows has seen ST bulls reclaim control of prices, with the next now to stabilize the rate above 1.5655/60, a technical event that would allow a possible retest of 1.5675/80 European high, ahead of more ambitious upside targets at 1.5690/1.57, highest volume node of the day. On the downside, the loss of 1.5655/60 should see downward pressures resume.