24 Sep 2013
GBP/USD collapses after dismal UK data
FXstreet.com (Athens)- The GBP/USD fell apart after discouraging UK data released fell short of market expectations.
GBP/USD tumbles as UK data bucked the trend of stronger than expected releases.
Carney-mania, consecutive series of better than expected releases and the post FOMC party, are slowly fading out. To be more specific, the recent trading sessions it was obvious that the cable was struggling for air above 1.6000 area and that is was losing steam. After the BBA Loans for House Purchase released at worse than expected levels (at 38228 for August versus 38950 estimated), the cable could not help hold the support as of 1.600, as it became obvious that it was just a matter of time for a worse release. The GBP/USD lost approximately 40 pips after the discouraging release.
Technical Outlook on GBP/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that “GBP/USD held the accelerated uptrend and attention currently remains for an extension towards the 2009-2013 downtrend at 1.6331. Despite the directional move seen last week we continue to look for this to hold the topside and provoke reversal. We note the TD perfected set up on the weekly chart and this adds weight to the idea of initial failure. Support is offered by the 1.5985 minor Fibonacci retracement – while above here the market remains immediately bid. Only below here will allow for a slide back to the 1.5686 3 month uptrend.”
GBP/USD tumbles as UK data bucked the trend of stronger than expected releases.
Carney-mania, consecutive series of better than expected releases and the post FOMC party, are slowly fading out. To be more specific, the recent trading sessions it was obvious that the cable was struggling for air above 1.6000 area and that is was losing steam. After the BBA Loans for House Purchase released at worse than expected levels (at 38228 for August versus 38950 estimated), the cable could not help hold the support as of 1.600, as it became obvious that it was just a matter of time for a worse release. The GBP/USD lost approximately 40 pips after the discouraging release.
Technical Outlook on GBP/USD
Karen Jones, Head Technical Analyst at Commerzbank suggests that “GBP/USD held the accelerated uptrend and attention currently remains for an extension towards the 2009-2013 downtrend at 1.6331. Despite the directional move seen last week we continue to look for this to hold the topside and provoke reversal. We note the TD perfected set up on the weekly chart and this adds weight to the idea of initial failure. Support is offered by the 1.5985 minor Fibonacci retracement – while above here the market remains immediately bid. Only below here will allow for a slide back to the 1.5686 3 month uptrend.”