GBP/USD Supported After Mixed UK Data
GBP/USD Analysis
This week's economic calendar is heavy for the UK, despite the fact that that rate decision of the Bank of England was moved to next Thursday September 22, due the Queen's passing away. Wednesday's Inflation figures are the main event, while today's release showed the economy expanded by 0.2% in July m/m, after last month 0.6% contraction. Industrial and Manufacturing production improved on a monthly basis, but the year-over-year figures were not as encouraging.
Markets also brace for the US Consumer Price Index update, after recent hawkish rhetoric from Fed officials, while no more comments are expected, since the communication blackout period has kicked in ahead of the September 21 policy decision.
The British Pound did not have any huge reaction to today's somewhat mixed data from the Old Albion, consolidating its rebound from the four-decades low against the greenback. After its first profitable week in a month, the pair has an opportunity to push higher for mid-1.1700s, but it does not inspire much confidence at this stage for a recovery beyond the EMA200 (at around 1.1810), that would pause downside bias.
On the other hand, GBP/USD is still in a precarious position and could face renewed pressure towards 1.1500, although a catalyst will likely be required for fresh lows under 1.1400.
Nikos Tzabouras
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
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