Greenback is up against the pound that is among the worst performers. The US dollar, like it happened during all week shows mixed results: is losing ground against most of its European rivals, but is rising versus commodity currencies despite the recovery in crude oil, that has risen 10% in 30 hours.
Growth numbers from the second quarter in the UK were not revised. The pound weakened further after the report. The GBP/USD dropped to 1.5363 and remains below 1.5400 under pressure.
After being rejected from above 1.5700 and making a sharp reversal, the pair broke an uptrend line and dropped back to the previous trading range. Now testing a relevant support that capped the decline on July and worked as a resistance in the past. A break of the 1.5350 area should open the doors for further losses, with targets at 1.5300 and then around 1.5200. June lows should offer support.
The area around 1.5360 seems like a strong support from where a bounce to the upside is possible. So far the bounce from the lows has been limited. If it gains momentum it could rise to 1.5450/60; only above it could remove some of the bearish momentum and would open the doors toward 1.5500.
The pair is about to post the first close under the weekly 20-SMA; the negative signal could be offset if it manages to end above 1.5350. But anyway the outlook remains bearish after the reversal and the break of an uptrend line. A close on top of 1.5500 would remove strength to the US dollar.
Growth numbers from the second quarter in the UK were not revised. The pound weakened further after the report. The GBP/USD dropped to 1.5363 and remains below 1.5400 under pressure.
After being rejected from above 1.5700 and making a sharp reversal, the pair broke an uptrend line and dropped back to the previous trading range. Now testing a relevant support that capped the decline on July and worked as a resistance in the past. A break of the 1.5350 area should open the doors for further losses, with targets at 1.5300 and then around 1.5200. June lows should offer support.
The area around 1.5360 seems like a strong support from where a bounce to the upside is possible. So far the bounce from the lows has been limited. If it gains momentum it could rise to 1.5450/60; only above it could remove some of the bearish momentum and would open the doors toward 1.5500.
The pair is about to post the first close under the weekly 20-SMA; the negative signal could be offset if it manages to end above 1.5350. But anyway the outlook remains bearish after the reversal and the break of an uptrend line. A close on top of 1.5500 would remove strength to the US dollar.
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