GBP/USD Supported After Mixed UK Data

  • GBPUSD
    (${instrument.percentChange}%)

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.

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}