FXOpen
Pound / Dollar (GBP/USD) remained broadly unchanged after a government report revealed slower than expected growth in the UK during fourth quarter of previous, the pair is likely to extend downside movement till 1.6540, according to technical analysis.
As of this writing, the pair is being traded near 1.6685, almost unchanged from today’s opening. Immediate resistance can be noted near 1.6726, the high of yesterday and a strong horizontal resistance. A break above 1.6730 resistance area shall expose 1.6821, the high of February 17.
On downside, support may be noted around 1.6582, the low of 24 February and 38.2% fib level, a break below 1.6582 shall expose more downside movement up to 1.6535 which is 50% fib level and a major hurdle for beers. It is pertinent to mentioned here that both Relative Strength Index (RSI) and Commodity Channel Index (CCI) are very close to overbought territory which shows considerable downside risk.
A report by Britain’s office of national statistics today showed that the economy grew at 2.7% in the fourth quarter as compared to 1.9% in the same duration of a year before, analysts had predicted an increase of 2.8%, hence Year on Year (YOY) reading missed expectations. However, the economy grew at 0.7% in the last quarter of previous year compared with 0.8% growth in a quarter before, Quarter on Quarter (QoQ) reading was in line with market expectations.
Meanwhile, total business investment in UK rose to 8.5% in the fourth quarter as compared to 5.3% decline in the same duration of a year before. Business investment however rose 2.4% — less than expectations – in the fourth quarter compared with 2.0% in a quarter before, market was expecting a 2.6% hike in total business investment. Hence the overall data was negative that might increase selling pressure in cable.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
XBR/USD Chart Analysis: Price Rebounds from a Seven-Week Low
On 1 December, we outlined a descending channel on the XBR/USD chart and noted that the bearish trend was driven by fading geopolitical risks. Indeed, hopes for an end to the war in Ukraine—along with the possibility of
Silver Price Hits Historic Record Around $64
On 27 November, we suggested that silver was preparing to challenge its all-time high. Since then (marked with the orange arrow), XAG/USD has risen by roughly 18%, breaking above the psychological $60-per-ounce threshold for the first time in history.