Key Highlights
- British pound tumbled this past week against the US dollar, as the latter one gained strength.
Later, the GBPUSD pair managed to recover ground after finding buyers around 1.4600-40.
Today, the CBI Industrial Trends Survey will be released by the Confederation of British Industry in the UK, which is expected to decline from 10 to 9.
Technical Analysis
The British pound as mentioned fell sharply this past week against the US dollar, and also created a new low. The GBPUSD pair traded as low as 1.4631 where buyers somehow managed to hold the downside. Later during the week, the pair climbed higher, but found resistance around an important bearish trend line on the daily chart.
The highlighted trend line acted as a barrier for the GBPUSD pair many times, and it might be again heading back towards the same. Currently, the pair is trading around the 38.2% fib retracement level of the last leg from the 1.5551 high to 1.4631 low. There is one critical aspect to note from the charts i.e. the fact that the daily RSI is heading towards the 50 level, which might act as a pivot for the pair in the near term. In short, the trend line resistance is aligned with the daily RSI reaching the 50 level.
UK CBI Industrial Trends Survey
Later during the London session, the UK CBI Industrial Trends Survey, which represents an expert qualitative opinion from senior manufacturing executives, on past and expected trends in output, exports and prices will be released by the Confederation of British Industry. The forecast is slated for a decline from 10 to 9 in March 2015, compared to the preceding month.
Titan FX is registered and regulated in New Zealand under FSP388647. Our global headquarters and operational hub is located in Auckland, New Zealand.
Recommended Content
Editors’ Picks
EUR/USD hold comfortably above 1.0750 as USD recovery loses steam
EUR/USD clings to small daily gains above 1.0750 in the early American session on Monday. In the absence of high-tier data releases, the US Dollar finds it difficult to gather recovery momentum and helps the pair hold its ground.
GBP/USD range bound around 200-DMA, awaiting BoE’s decision
The Pound Sterling registers anemic losses against the US Dollar as traders brace for the Bank of England’s (BoE) monetary policy decision on Thursday. The pair remained within the 1.2529-1.2594 boundaries during the last few days, capped by key support and resistance levels. The GBP/USD trades at 1.2556, down 0.04%.
Gold eases toward $2,310 amid a better market mood
After falling to $2,310 in the early European session, Gold recovered to the $2,310 area in the second half of the day. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.5% and helps XAU/USD find support.
Ripple lawsuit develops with SEC reply under seal, XRP holders await public redacted versions
Ripple lawsuit’s latest development is SEC filing, under seal. The regulator has filed its reply brief and supporting exhibits and the documents will be made public on Wednesday, May 8.
The impact of economic indicators and global dynamics on the US Dollar
Recent labor market data suggest a cooling economy. The disappointing job creation and rising unemployment hint at a slackening demand for labor, which, coupled with subdued wage growth, could signal a slower economic trajectory.