GBPUSD ahead of GDP

Daily 

4hrs

     

The sterling remained apathetic to the BoE’s Financial Stability Report and Osborne’s Spending Review, while it seems to be more affected by MPC’s Miles, who advocated for further easing. The pound is also taking the hit after dovish comments by ECB’s Draghi. Camilla Sutton, Strategist at Scotiabank noted that the outlook on the pair remains bearish in the short term, adding “with most signals in sell territory and spot suggesting building downside momentum. In addition, spot has broken through the 50-day MA of 1.5387 and now flirting with a break of the 100-day MA at 1.5312. We expect further near-term weakness with a test down to 1.5200 in the near-term”. Recall that the bank holds a year-end target of 1.45 for GBP/USD.

GBP/USD critical levels

The pair is down 0.39%  immediate support at 1.5300 (psychological level) ahead of 1.5293 (50% of 1.4832-1.5753) and then 1.5290 (low Jun.5). 

   1hrly 

Economic Data Could see the a relief rally in the £ see below

08:30	UK	GBP	BOE Credit Conditions Survey (Q2)	1
08:30	UK	GBP	Current Account (Q1)	2		£-11.800B	£-14.037B
08:30	UK	GBP	Gross Domestic Product (QoQ) (Q1)	3		0.3%	0.3%
08:30	UK	GBP	Gross Domestic Product (YoY) (Q1)	3		0.6%	0.6%
08:30	UK	GBP	Total Business Investment (YoY) (Q1)	2
08:30	UK	GBP	Total Business Investment (QoQ) (Q1)	1		-0.4%	-0.8%