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7 Oct 2013
GBP/USD opens higher after cascade lower on Friday. A corrective bounce?
FXstreet.com (Barcelona) - GBP/USD looks like it bottomed temporarily last Friday – but how high will this corrective bounce go? Major data flow from both the US and Britain will drive the action this week.
GBP/USD traders to focus on DC and data this week
GBP/USD traders will have to continue to stay on their toes as the headlines out of Washington continue to flow in. However, data points out of Britain and the US this week will also be major factors in the near-term direction of the GBP/USD – including:
• Monday – US Consumer Credit
• Tuesday – US Trade Balance; US Fed Head speeches
• Wednesday – BOE Credit Conditions; British Industrial Production; British Manufacturing Production; British Trade Balance; British GDP estimate; US mortgage applications; US 10-Year Note auction; US FOMC meeting minutes
• Thursday – BOE interest rate decision and asset purchase facility announcements; US import/export prices; US weekly jobless claims; multiple Fed Head speeches; US 30-Year Bond auction
• Friday – British Leading Economic Index; US monthly jobs report; US PPI; US retail sales; US University of Michigan Consumer Sentiment; US Business Inventories
Technical outlook for GBP/USD
GBP/USD traded down viciously Friday, but fell short of touching extended third wave projected support at 1.5999. Below that level comes 1.5954. Resistance for the cross comes in at the 9/18 high at 1.6162.
GBP/USD traders to focus on DC and data this week
GBP/USD traders will have to continue to stay on their toes as the headlines out of Washington continue to flow in. However, data points out of Britain and the US this week will also be major factors in the near-term direction of the GBP/USD – including:
• Monday – US Consumer Credit
• Tuesday – US Trade Balance; US Fed Head speeches
• Wednesday – BOE Credit Conditions; British Industrial Production; British Manufacturing Production; British Trade Balance; British GDP estimate; US mortgage applications; US 10-Year Note auction; US FOMC meeting minutes
• Thursday – BOE interest rate decision and asset purchase facility announcements; US import/export prices; US weekly jobless claims; multiple Fed Head speeches; US 30-Year Bond auction
• Friday – British Leading Economic Index; US monthly jobs report; US PPI; US retail sales; US University of Michigan Consumer Sentiment; US Business Inventories
Technical outlook for GBP/USD
GBP/USD traded down viciously Friday, but fell short of touching extended third wave projected support at 1.5999. Below that level comes 1.5954. Resistance for the cross comes in at the 9/18 high at 1.6162.