Tuesday, August 30, 2016

GBP/USD has recorded small losses on Tuesday

GBP/USD has recorded small losses on Tuesday, as the pair trades slightly below the 1.31 level. On the release front, British Net Lending to Individuals dropped to GBP 3.8 billion, well short of the forecast. Later in the day, GfK Consumer Confidence is expected to come in at -8 points. In the US, today’s highlight is CB Consumer Confidence. The indicator is expected to remain steady, with a forecast of 97.2 points. On Wednesday, the US will release two key events – ADP Nonfarm Employment Change and Pending Home Sales.
•GBP/USD posted slight gains in the Asian session and is flat in European trade
•1.3064 was tested earlier in support and could break in the North American session
•There is resistance at 1.3142
Further levels in both directions:
•Below: 1.3064, 1.2938 and 1.2849
•Above: 1.3142, 1.3219, 1.3327 and 1.3480
•Current range: 1.3064 to 1.3142
GBP/USD ratio is showing little change on Tuesday, consistent with the lack of movement from GBP/USD. Long positions have a small majority (52%), indicative of trader bias towards GBP/USD moving reversing directions and moving upwards.