WEEKLY ECONOMIC DATA TO IMPACT ON THE PAIR
Monday GBP - CBI industrial order expectations
USD - Industrial and Manufacturing, Production, and NAHB Housing Market Index
Tuesday GBP - Bank stress test result, BOE governor Carney speech, CPI, PPI input, and RPI
USD - Building Permits and Housing Starts
Wednesday GBP - Unemployment rate
USD - Core Inflation and Federal Reserve Rate Decision
Thursday GBP - retail sales
USD - Jobless Claims Data
The US strong data and raising expectations that the Federal Reserve will soon announce a interest rates hike supported the US dollar. The cable managed to gain ground last week. Today, ahead of the US industrial production and NAHB housing market index the pair is trading in a bearish zone. The cable has the nearest support at 1.5695 and 1.5685. The cable managed to close above 20Dsma. For an intraday view, the prices are holding at 35DEMA or 1.5700. In case if the prices fall below 1.5700, we can expect 34hrsma will act as support at 1.5670 and 1.5650. The hourly momentum oscillators are giving a selling signal. We recommend fresh selling below 1.5695 with the targets at 1.5680 ,1.5670, 1.5650, and 1.5630. The pair has hourly resistance at 1.5720 and 1.5736. On the hourly chart, the cable prices are managing to hold and trade above a 1-week support trend line. In case it breaks below the trend line, we can expect 1.5650 will decide the weekly trend. The prices have been consolidating for 3 days.
The material has been provided by InstaForex Company - www.instaforex.com
