Monday, July 25, 2016

The British pound

The British pound is unchanged at the start of the new trading week. Early in the North American session, GBP/USD is trading slightly at the 1.31 line. On the release front, it’s a quiet start to the week, with just one event on the schedule. British CBI Industrial Order Expectations came in at -4 points, within expectations. There are no US releases on Monday. On Tuesday, the US releases CB Consumer Confidence and New Home Sales, both key indicators.•GBP/USD was flat in the Asian session and has posted sharp losses in the European session. The pair is showing limited movement early in the North American session
•1.3142 has switched to a resistance role following sharp losses by GBP/USD in the European session
•1.3064 is providing support. It is a weak line and could be tested in the North American session
GBP/USD ratio is showing gains in long positions on Friday, consistent with the sharp losses recorded by GBP/USD. Currently, long positions have a majority (54%), indicative of trader bias towards GBP/USD reversing directions and moving higher.