British Pound in the Search for Support

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British Pound in the Search for Support

GBP/USD Fundamentals of the Day

  • UK Claimant Change “Better Than Expected”
  • UK MPC Minutes “No Changes”
  • US CPI – Coming up at 8:30 EST

UK Claimant Change figures were better than expected this morning. Also, the Bank of England’s MPC Minutes revealed no changes from last month as all 9 members were in favor of leaving interest rates at 0.5%. On the news, the GBPUSD traded back towards the 1.5700 figure, holding currently just below. Coming up today, Forex traders will be awaiting US CPI figures. With the USDJPY finally gathering momentum as it nears 79.00 we could see additional momentum in the Forex pair after today’s CPI numbers. Also, a low reading could knock prices of Gold lower after they fell below 1600 again today.

Technical View
Has long term resistance at 1.5750, but is creating a solid base just above 1.5650. As such, the pair could be gaining enough demand to finally break out above 1.5750. On the other hand, if 1.5650 fails, it could trigger hard selling pressure in the GBPUSD as short term traders take profits and exit the pair.

Forex Diva View

For now, we are waiting for the pair to get out of the Ichimoku cloud for a more clear direction.