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Forex: GBP/USD bounces back on US data

FXstreet.com (Barcelona) - After finding resistance at 1.5170 area, the GBP/USD fell to 1.5112 low after the release of UK Index of Services that fell -0.2% in January, as expected, following a -0.1% drop in the previous month. Also from the UK was the BOE FPC statement, recommending regular stress testing for UK banks from 2014. Then, support at 1.5120 area pulled the market to the upside and is already trading above 1.5150 after the release of US data.

US Chicago PMI fell from 56.8 to 52.4 in March, below expectations at 56.5. The third reading of the Q4 GDP data in the US points to economic growth by 1.0%, instead of the expected 0.9%. The annualized figure remained at 0.4% growth.

In the week ending at March 24, initial jobless claims rose from 341K to 357K, instead of easing slightly to 340K. Continuing claims eased from 3.077M (revised from 3.053M) to 3.050M, but analysts were expecting 3.043M. The quarterly change of Personal Consumption Expenditures in Q4 was able to beat consensus of an unchanged figure at 1.5% and rose to 1.6%.

“The corrective slide from 1.5260 bottomed at 1.5090 and current intraday bias is positive above 1.5140 minor support”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to a break through the 1.5180 crucial level to confirm a reversal at 1.5090 and to set the focus on 1.5330 resistance area.

Forex Flash: Record pace of Japanese foreign equity selling continued - Nomura

Nomura strategist Yujiro Goto notes that Japanese investors kept investing in foreign equities at a record pace last week.
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Forex Flash: GBP/USD with conflicting signals but likely to resume down move - Commerzbank

June 2012 low, at 1.5269, remains as a strong resistance and the GBP/USD failed there: “It is likely that the up move has terminated here, but the intraday charts are giving conflicting signals and the Elliott wave count suggests that we should allow for a 1.5350/1.5475 move prior to failure. This leaves unable to rule out the possibility of one more leg higher before the longer term down move resumes. This is expected to provoke failure”, wrote analyst Karen Jones, expecting the GBP/USD to again drift lower towards the psychological 1.5000 region, then the 1.4832 March low. “Longer term we look for losses to 1.4229, the 2010 low. Minor support can be seen around the 1.5176 March 15 high”, added Commerzbank analyst.
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