Wednesday, August 3, 2016

The British pound is showing little movement on Wednesday

The British pound is showing little movement on Wednesday. Early in the North American session, GBP/USD is trading at 1.3340. On the release front, it’s a quiet day. British Construction PMI was unchanged at 47.4 points, matching the forecast. In the US, there are two key indicators on the schedule. ADP Nonfarm Employment Change improved to 179 thousand, beating expectations. Later in the day, the US releases ISM Non-Manufacturing PMI. On Thursday, we could see some volatility from the pound, as the the BoE is widely expected to lower interest rates, Over in the US, the key event is Unemployment Claims.
•GBP/USD has shown limited movement in the Wednesday session
•1.3219 is providing strong support
•1.3359 was tested earlier in resistance and is a weak line. It could break in the North American session
Further levels in both directions:
•Below: 1.3219, 1.3142, 1.3064 and 1.2938
•Above: 1.3359, 1.3513 and 1.3667
•Current range: 1.3219 to 1.3359
GBP/USD ratio has shown slight gains in short positions. Long and short positions are close to an even split, indicative of a lack of trader bias as to what direction GBP/USD will take next.