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19 Aug 2013
GBP/USD drops below 1.5630 zone, will bulls maintain fronts?
FXstreet.com (Chicago) - GBP/USD has strengthened 0.03% since the beginning of the trading journey in Asia post UK’s housing data. The pair maintains 7-week gains after formidable rally last Friday amid speculations on Fed’s tapering and post UK economic results. Despite its advancement, the pair has dropped below 1.5630 zone.
Impatience and Uncertainty
In the UK, the housing market reveals mixed results as the month of August marked a decline from 0.3% in July to -1.8% as indicated by the Rightmove House Price Index (MoM). Nonetheless, the YoY marked improvements at 5.5% vs. previous 4.8%, indicating a better state of affairs in comparison with last year’s situation. In the US, the case remains focused on the Fed’s decision and timing to reduce the multi-billionaire monetary stimulus. Prior to last week’s data, no hints were provided in terms of potential changes to the amount, but after mixed job results were released, the Fed announced it will decide on when and how much money will be reduce once clearer economic results are published. Indecision and uncertainty were reflected in the stock market’s closings and currency prices fluctuations.
Technical Levels
Technically speaking, the pair remains on corrective channel after impulsive price action that drove the price above 1.5630 zone. At 1.5621, the price oscillates between supports at 1.5600 (August 15th lows), 1.5558 (August 7th lows) ahead of 1.5515 (August 9th lows) and resistances at 1.5684 (June 6th highs), 1.5171 (June 12th highs) followed by 1.5750 (June 18th highs). The FXstreet.com trend index reports the pair slightly bearish on one-hour timeframe analysis with a neutral EMA20 and ahead of the FOMC minutes due Wednesday.
Impatience and Uncertainty
In the UK, the housing market reveals mixed results as the month of August marked a decline from 0.3% in July to -1.8% as indicated by the Rightmove House Price Index (MoM). Nonetheless, the YoY marked improvements at 5.5% vs. previous 4.8%, indicating a better state of affairs in comparison with last year’s situation. In the US, the case remains focused on the Fed’s decision and timing to reduce the multi-billionaire monetary stimulus. Prior to last week’s data, no hints were provided in terms of potential changes to the amount, but after mixed job results were released, the Fed announced it will decide on when and how much money will be reduce once clearer economic results are published. Indecision and uncertainty were reflected in the stock market’s closings and currency prices fluctuations.
Technical Levels
Technically speaking, the pair remains on corrective channel after impulsive price action that drove the price above 1.5630 zone. At 1.5621, the price oscillates between supports at 1.5600 (August 15th lows), 1.5558 (August 7th lows) ahead of 1.5515 (August 9th lows) and resistances at 1.5684 (June 6th highs), 1.5171 (June 12th highs) followed by 1.5750 (June 18th highs). The FXstreet.com trend index reports the pair slightly bearish on one-hour timeframe analysis with a neutral EMA20 and ahead of the FOMC minutes due Wednesday.