11 Apr 2014
GBP/USD setting up for next week
FXStreet (Guatemala) - GBP/USD is trading at 1.6744, down -0.24% on the day, having posted a daily high at 1.6792 and low at 1.6717.
GBP/USD Downside
Strategists at RBS noted the event risk next week and said, “The GBP ramifications of UK economic data have long been a conflict between strengthening near-term survey data and weakening medium-term fundamentals. In that context moderating survey data, while still strong, have introduced downside risks to GBP. Industrial production released this week admittedly worked against this view and suggests that UK industry may be playing a greater role in the UK recovery. Next week, we expect employment growth to slow but a 90K 3m gain may still be enough to see the unemployment rate tick down to 7.1%. Headline inflation may fall to another multi-year low and reinforce the dovish UK. We like GBP downside next week”.
Meanwhile, the hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish. At the time of writing, RSI is neutral at 59.27, up from 44.87 at the last hour close, while ADX is ranging at 28.45, up from 24.75 previous.
GBP/UD Levels
With spot trading at 1.6745, we can see next resistance ahead at 1.6752 (Daily Classic S1), 1.6753 (Hourly 20 EMA), 1.6754 (Yesterday's Low), 1.6784 (Daily Open) and 1.6787 (Daily Classic PP). Support below can be found at 1.6737 (Weekly Classic R2), 1.6735 (Hourly 100 SMA), 1.6719 (Daily Classic S2), 1.6717 (Daily Low) and 1.6684 (Daily Classic S3).
GBP/USD Downside
Strategists at RBS noted the event risk next week and said, “The GBP ramifications of UK economic data have long been a conflict between strengthening near-term survey data and weakening medium-term fundamentals. In that context moderating survey data, while still strong, have introduced downside risks to GBP. Industrial production released this week admittedly worked against this view and suggests that UK industry may be playing a greater role in the UK recovery. Next week, we expect employment growth to slow but a 90K 3m gain may still be enough to see the unemployment rate tick down to 7.1%. Headline inflation may fall to another multi-year low and reinforce the dovish UK. We like GBP downside next week”.
Meanwhile, the hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish. At the time of writing, RSI is neutral at 59.27, up from 44.87 at the last hour close, while ADX is ranging at 28.45, up from 24.75 previous.
GBP/UD Levels
With spot trading at 1.6745, we can see next resistance ahead at 1.6752 (Daily Classic S1), 1.6753 (Hourly 20 EMA), 1.6754 (Yesterday's Low), 1.6784 (Daily Open) and 1.6787 (Daily Classic PP). Support below can be found at 1.6737 (Weekly Classic R2), 1.6735 (Hourly 100 SMA), 1.6719 (Daily Classic S2), 1.6717 (Daily Low) and 1.6684 (Daily Classic S3).