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13 Aug 2013
GBP/USD working off overbought condition with current pullback
FXstreet.com (Barcelona) - GBP/USD has pulled back mildly over the last few sessions as tapering-related Dollar strength has dragged the cross lower.
British CPI data and US retail sales to drive GBP/USD in the short-term
As there has been light data flow for Britain and the US over the last few days, the GBP/USD has been reacting more to rumors and speculation surrounding the potential commencement of the US Fed’s “tapering” program. That speculation has caused the GBP/USD to pull back rather gently after a ferocious rally the previous five sessions.
Tuesday will bring a pick-up in the data flow for the two countries as Britain will release their CPI, PPI and industrial price data at 08:30 GMT and the US will release retail sales figures at 12:30 GMT.
Technical outlook for GBP/USD
Technicians are still holding onto an intermediate-term downside target at 1.4831, but now acknowledge that GBP/USD will first likely run up to 1.5738 (from 1.5486 currently) before making the big downside move. Shorter-term resistance comes in at Friday’s peak of 1.5573 and is followed by the May 3rd peak at 1.5601 while short-term support comes in at the 38.2% Fibonacci retracement of the 8/7 – 8/8 move higher.
British CPI data and US retail sales to drive GBP/USD in the short-term
As there has been light data flow for Britain and the US over the last few days, the GBP/USD has been reacting more to rumors and speculation surrounding the potential commencement of the US Fed’s “tapering” program. That speculation has caused the GBP/USD to pull back rather gently after a ferocious rally the previous five sessions.
Tuesday will bring a pick-up in the data flow for the two countries as Britain will release their CPI, PPI and industrial price data at 08:30 GMT and the US will release retail sales figures at 12:30 GMT.
Technical outlook for GBP/USD
Technicians are still holding onto an intermediate-term downside target at 1.4831, but now acknowledge that GBP/USD will first likely run up to 1.5738 (from 1.5486 currently) before making the big downside move. Shorter-term resistance comes in at Friday’s peak of 1.5573 and is followed by the May 3rd peak at 1.5601 while short-term support comes in at the 38.2% Fibonacci retracement of the 8/7 – 8/8 move higher.