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7 Sep 2015
GBP/USD allowed to drift in thin trade through 50 SMA
FXStreet (Guatemala) - GBP/USD is currently trading with a high of 1.5290 and up through the 50 SMA (1.5226) on the hourly chart, consolidating at 1.5280 resistance.
GBP/USD is making a minor recovery from below the 1.52 handle and garners some demand in oversold conditions, taking advantage of thinner conditions while the US have been out for labor day.
GBP/USD and BoE
The week ahead for the UK holds July Industrial Production on the 9th with risks to the downside of this release and then we have July Construction on the 11th. But key detail for the pound will come from the BoE meeting on the 10th as the minutes and vote will be published alongside the rate decision, so should give markets some detail to play on. Of particular interest will be details relating to the recent market volatility and how this may impact the UK's inflation, and number of members voting to hold this month, given that is the outcome again while some analysts predict the BoE will be able to move in 2016.
GBP/USD levels
Technically, Karen Jones, chief analyst at Commerzbank explained that a close below 1.5233 would force us to adopt a more bearish stance as this should be enough to trigger losses to the 1.5172 June low and 1.5088 the 61.8% retracement. "Intraday rallies should find initial resistance circa 1.5425, the 7th August low ahead of 1.5660 and the 1.58175 recent high."
GBP/USD is making a minor recovery from below the 1.52 handle and garners some demand in oversold conditions, taking advantage of thinner conditions while the US have been out for labor day.
GBP/USD and BoE
The week ahead for the UK holds July Industrial Production on the 9th with risks to the downside of this release and then we have July Construction on the 11th. But key detail for the pound will come from the BoE meeting on the 10th as the minutes and vote will be published alongside the rate decision, so should give markets some detail to play on. Of particular interest will be details relating to the recent market volatility and how this may impact the UK's inflation, and number of members voting to hold this month, given that is the outcome again while some analysts predict the BoE will be able to move in 2016.
GBP/USD levels
Technically, Karen Jones, chief analyst at Commerzbank explained that a close below 1.5233 would force us to adopt a more bearish stance as this should be enough to trigger losses to the 1.5172 June low and 1.5088 the 61.8% retracement. "Intraday rallies should find initial resistance circa 1.5425, the 7th August low ahead of 1.5660 and the 1.58175 recent high."