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16 Aug 2013
GBP/USD blows past 1.5573 resistance. Next key level 1.5738.
FXstreet.com (Barcelona) - GBP/USD ripped higher Thursday on a combination of strong British and weak US data. Technicians now say 1.5738 is looking like key resistance for the cross.
British retail sales and sluggish US data points drove GBP/USD through resistance
British retail sales data came in better-than-expected Thursday – which lit the fuse for the GBP/USD. Then, US manufacturing data, industrial production / capacity utilization and Treasury International Capital data all came in well below expectations (more than overshadowing lower jobless claims and in-line CPI data) and acted as gasoline being added to the fire.
Friday, traders will get to digest British inflation data and the US’s University of Michigan Consumer Confidence Survey.
Technical outlook for GBP/USD
Technicians are still holding onto an intermediate-term downside target at 1.4831, but now acknowledge that GBP/USD will first likely run up to 1.5738 before making the big downside move. Shorter-term resistance comes in at the Fibonacci price projection of 1.5650. Shorter-term support comes into play at the 8/8 high of 1.5573.
British retail sales and sluggish US data points drove GBP/USD through resistance
British retail sales data came in better-than-expected Thursday – which lit the fuse for the GBP/USD. Then, US manufacturing data, industrial production / capacity utilization and Treasury International Capital data all came in well below expectations (more than overshadowing lower jobless claims and in-line CPI data) and acted as gasoline being added to the fire.
Friday, traders will get to digest British inflation data and the US’s University of Michigan Consumer Confidence Survey.
Technical outlook for GBP/USD
Technicians are still holding onto an intermediate-term downside target at 1.4831, but now acknowledge that GBP/USD will first likely run up to 1.5738 before making the big downside move. Shorter-term resistance comes in at the Fibonacci price projection of 1.5650. Shorter-term support comes into play at the 8/8 high of 1.5573.