Thursday, 10 August 2017

GBP/USD At 38.2% Fibo

The macro data released today in UK failed to set clear direction for GBP/USD and the pair is seen in consolidation mode around 1.3000 handle. 
UK's Industrial Production rose above the expected 0.5% inter-month during June and 0.3% on an annualised basis, but manufacturing came in flat on a monthly basis, advancing  by 0.6% over the last 12 months, which met the market's expectations. 
Additionally the UK’s trade balance figures showed that the trade deficit widened by £2.0 billion to £4.6 billion in June. 
Ahead of the release of the NSIER GDP estimate, the cable marked intraday high at 1.3014 and respectively low at 1.2951. The current market price is 1.30, exactly at 38.2% Fibonacci retracement of latest June to August bullish run. 
On the four-hour time frame the price is moving below its bearish 20-day SMA, while the 200-day SMA has crossed it to above. Indicators are slightly below there mid-lines with stochastic  heading north and RSI with lack of directional strength. 
The pair is facing first resistance at 1.3010 and eventual break will open doors for testing 1.3050. Looking to downside, critical level is the daily low at 1.2951.