GBP/USD keeps consolidating on the hourly chart between $1.5650 and $1.5720.
On the positive side we have positive risk sentiment after Asian
session. In addition, the Bank of England is expected to increase its
asset purchase program on Thursday to restart the engines of the
lackluster UK economy.
On the downside there’s weak British construction PMI data (the index
fell to 48.2 in June from 54.4 in May and below consensus of 53.0
indicating contraction of the industry). Net lending to individuals came
at 1.3B in May (above 1.1B expected, but below 1.4B in April).
Analysts at Commerzbank think that the pair will retest resistance in
the $1.5752/1.5786 area (200-day MA and 50% Fibonacci retracement). In
this region one may also find $1.5806 (55-day MA) and $1.5771 (200-week
MA). The resistance seems strong and it will likely stop the first
bullish attack. If the bulls manage to overcome resistance, GBP/USD will
be able to rise above $1.6000 where the specialists also see high odds
of failure.
Support is at $1.5600 and $1.5485. Below these levels there’s a risk
of a slide to $1.5407 and $1.5269/35 (recent minimum and 2012 minimum).
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