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M.A

GBP's Technimentals

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U.K data came worse than expected which resulted in weaker gbp against major rivals.

 

Gbp/usd continues to fall today. Just a couple of hours ago, it found support near 2nd june low. Overall trend remains bearish which will most probably take the pair to 1.5140.

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Data from U.K remained unchanged and came as forecasted. gbp/usd moved slightly bearish today but overall change is very minor. It found good support at 1.5200 yesterday and then bounced back. No more fundamentals from U.K so pair is expected to end this week slightly above 1.5200 level.

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Most important data from U.K will be interest rate decision on thursday which is expected to remain unchanged.

So majors with gbp will continue to move under technical pressure. gbp/usd will most probably be bearish and may find good support at 1.5008. Next major support level is at 1.4832.

 

After reaching near major resistance level of 0.8590, eur/gbp is giving strong indication of reversal. Support level lies at 0.8470.

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Nothing important from U.K today.

ISM manufacturing data from U.S is released a few minutes back and it came better than expected. Incase of gbp/usd, now technicals and fundamentals both are favoring bearish move.

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gbp/usd is touching support trend line at this time and I am expecting strong bearish trend if it comes below 1.5200. This bearish trend will most probably take it to near 1.5100.

1.png.18e4bf949ed4a20eae29ae39bb759c3c.png

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Halifax housing price data came better than expected and interest rate remained unchanged.

After dovish statements from BoE statement, Gbp fell sharply against counterparts. Gbp/usd went to 5-week low and eur/gbp gained more than 100 pips immediately after it but then corrective moves erased more than 50% of the gains.

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No fundamentals from U.K. Tomorrow industrial production, manufacturing production, trade balance and NIESR gdp estimate data will be released.

 

Gbp/usd was expected to follow eur/usd's corrective moves today as both fell sharply in last week. Gbp/usd is still below resistance level of 1.4986. Clear trend will be defined tomorrow after above data is released.

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After weaker than expected data from U.K, gbp/usd has set new 38-month low. Next target is 1.4229 which looks highly probable given current economic situation. Small retracements are expected.

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Gbp/usd is strongly bullish after 10-july fundamentals. It will most probably reach near resistance level of 1.5300. There are no major fundamentals tomorrow so I am not expecting any major retracement.

1.png.75f15ba867e7771bc7ad35190f01ddec.png

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Gbp/usd is strongly bullish after 10-july fundamentals. It will most probably reach near resistance level of 1.5300. There are no major fundamentals tomorrow so I am not expecting any major retracement.

 

I wouldn't call it stronglly bullish though

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Instead of any significant downward corrective move, gbp/usd is rangebound and by looking at current mood, it looks like gbp/usd will go towards major resistance level of 1.5304.

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There was no important fundamentals from U.K this week and U.S data was dominant in defining direction.

 

Gbp/usd and eur/usd moved in almost same style. Look at any usd pair and it will tell the impact of fomc and bernarke's speech. Market sentiments are still bullish. Resistance level lies at 1.5300 and then at 1.5478.

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Weaker than expected U.S retails sales data VS Weaker than expected CPI from UK.

Result is as expected and gbp/usd has erased all gains today after CPI release.

 

But usd weakeness dominates has taken gbp/usd up again. By looking at current market sentiments, gbp/usd is will most probably go towards next resistance zone of 1.5195 to 1.5200.

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Bernark's comments stopped rally in gbp/usd. Bernarke said that economic recovery process is continuing at comfortable pace but more accomodative policies are needed. BoE indicated that, given less than expected pace in U.K's economic recovery, interest rates are expected to remain unchanged.

 

Gbp/usd was expected to find resistance at 1.5304 and support at 1.5079. It has currently consolidated around 1.5220. Market sentiments are not in favor of usd so gbp/usd is likely to touch 1.5304 level.

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Retails sales data from U.K came better than expected.

 

GBP remained almost neutral against usd and eur. But it gained more than 1% against jpy and it has reached key resistance level of 153.03.

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Unlike eur/usd, gbp/usd is struggling more to get out of range-bound movements. It broke above key resistance of 1.5222 but then consolidated a few pips above it. Sentiments remains bullish. Next resistance level lies at 1.5304.

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There are not many important news this week from U.K.

 

Most important news, from U.K, in coming week is preliminary GDP release on Thursday.

Other than that U.K is to release report on mortgage approvals on Tuesday and industrial order expectations data on Wednesday.

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Gbp has shown strength against usd and eur but fell against other major counterparts.

Gbp/usd has gained around 70 pips today. Eur/gbp has lost more than 20 pips today.

 

There is no important data release from U.K today.

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BBA mortgage approvals came weaker than expected which caused a loss of approximately 50 pips in gbp/usd. GBP is also down against eur, nzd and cad. It has gained significant strength against yen.

 

Gbp/usd is trading near minor support level of 1.5325 and is expected to retrace from this level to continue bullish trend.

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CBI industrial orders data came better than expected but it wasnt enough to strengthen gbp against eur and usd.

 

Gbp/usd has touched 1.5315. U.S home sales data is yet to come in next half an hour and it will have significant impact on gbp/usd.

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I am currently moving my post to news section..... I will provide the link soon.

Edited by M.A
Moving most to News Section

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There are no economic data release from U.K today.

Yesterday, Preliminary GDP figures from U.K came as expected. Gbp/usd showed significant fall after GDP figures. It found support after weaker than expected data release from U.S. Gbp/usd is range-bound since then.

It was expected to reach at resistance level of 1.5478 but strong U.S consumer sentiments data pulled it back below 1.5400.

 

This week Eur/gbp found good support near 10-july low and retraced back above 0.8630. Long term trend remains bullish. But in short-term pair is mostly range-bound.

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