26 Sep 2013
GBP/USD tumbles on softer GDP revision, unexpected business investment drop
FXstreet.com (Athens) – The GBP/USD lost heavy ground of approximately 40 pips after the announcement of the softer GDP revision, as well as on the unexpected business investment drop.
GBP/USD didn’t like much the weaker GDP revision, poor account balance
The GBP/USD was hovering around 1.5990 area, after a series of UK data dismal releases wounded the cable and dragged it down almost 40 pips to 1.5950. Elaborating on, the total business investment second quarter final reading was released softer down 8.5% versus (-3.5%) estimated and (-3.5%) the prior one. What’s more, the trade balance was released at very discouraging levels i.e. wider current account deficit, while there was also a deep and unexpected business investment drop.
Technical Analysis and Strategic Bias on GBP/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that “the GBP/USD seems to have found short term support at 1.5954. While a weekly TD perfected set up exists AND the 2009-2013 downtrend at 1.6331 directly overhead caps, the risk remains on the downside. Attention shifts to the 1.5735 3 month uptrend while the current September high at 1.6160 caps.”
GBP/USD didn’t like much the weaker GDP revision, poor account balance
The GBP/USD was hovering around 1.5990 area, after a series of UK data dismal releases wounded the cable and dragged it down almost 40 pips to 1.5950. Elaborating on, the total business investment second quarter final reading was released softer down 8.5% versus (-3.5%) estimated and (-3.5%) the prior one. What’s more, the trade balance was released at very discouraging levels i.e. wider current account deficit, while there was also a deep and unexpected business investment drop.
Technical Analysis and Strategic Bias on GBP/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that “the GBP/USD seems to have found short term support at 1.5954. While a weekly TD perfected set up exists AND the 2009-2013 downtrend at 1.6331 directly overhead caps, the risk remains on the downside. Attention shifts to the 1.5735 3 month uptrend while the current September high at 1.6160 caps.”