Wednesday, August 31, 2016

GBP/USD posted gains but has then retracted on Wednesday

GBP/USD posted gains but has then retracted on Wednesday, as the pair trades slightly below the 1.31 line. On the release front, British GfK Consumer Confidence came in at -7 points, within expectations. In the US, we’ll get a look at two key indicators – ADP Nonfarm Employment Change and Pending Home Sales. On Thursday, the US releases unemployment claims and the ISM Manufacturing PMI. The UK will publish Manufacturing PMI.
GBP/USD Technical
S1 S2 S1 R1 R2 R3
1.2849 1.2938 1.3064 1.3142 1.3219 1.3327
•GBP/USD posted slight gains in the Asian and European sessions. The pair has posted considerable losses in North American trade
•1.3064 is providing support
•1.3142 has some breathing room in resistance following considerable losses in the North American session
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 has posted small gains on Wednesday. Long positions have a majority (55%), indicative of trader bias towards GBP/USD breaking out and moving upwards.