1 Jul 2013
GBP/USD rebounds on positive UK data
FXstreet.com (London) - GBP/USD had fallen through 1.5200 pre data, but reversed when UK activity surprised to the upside.
PMI came in as 52.5 beating expectations of 51.5. Mortgage Approvals for May 58.242k vrs expectations of 55.05k. Net Lending to Individuals was lower at £1b vrs £1.4b consensus. On the releases, GBP/USD soard to close gap to 1.5245, between Fridays close and Mondays open in Asia. The market will focus on US data for the pair today, while regional surveys suggest that ISM manufacturing in June printed back above 50, suggesting that the soft patch is coming to an end.
GBP/USD Bearish Technicals
Despite this move, Saeed Amen, strategist at Nomura, said the technicals are bearish for next week and ranging. He keeps his bearish view. “RSI has continued to drift lower indicating downside momentum is likely to persist.” He explains, with bandwidth coming off, he thinks any move lower will likely be within the range, as opposed to be a big breakout. His target for the move lower is 1.5125 (just below lower Bollinger band).
PMI came in as 52.5 beating expectations of 51.5. Mortgage Approvals for May 58.242k vrs expectations of 55.05k. Net Lending to Individuals was lower at £1b vrs £1.4b consensus. On the releases, GBP/USD soard to close gap to 1.5245, between Fridays close and Mondays open in Asia. The market will focus on US data for the pair today, while regional surveys suggest that ISM manufacturing in June printed back above 50, suggesting that the soft patch is coming to an end.
GBP/USD Bearish Technicals
Despite this move, Saeed Amen, strategist at Nomura, said the technicals are bearish for next week and ranging. He keeps his bearish view. “RSI has continued to drift lower indicating downside momentum is likely to persist.” He explains, with bandwidth coming off, he thinks any move lower will likely be within the range, as opposed to be a big breakout. His target for the move lower is 1.5125 (just below lower Bollinger band).