GBP/USD: outlook for August 21-25

GBP/USD: outlook for August 21-25

Reports released this week in the UK showed a mixed picture. Consumer price inflation in Britain unexpectedly held steady in July at an annual rate of 2.6%, despite the fact that analysts were looking forward to a higher number. This news diminishes the pressure on the Bank of England to raise interest rates – not a positive factor for the pound. Retail sales growth exceeded forecasts on the monthly basis, although advance of the indicator in 3 months through July was the weakest in almost 4 years.

In the coming days, Britain will release the second estimate of its GDP growth in the second quarter. According to the initial data, the UK economy expanded by only 0.3% – that’s weak in comparison with last year’s figures.

Uncertainty about Brexit and global risk concerns are having a negative impact on the British currency.

GBP/USD broke below the 50-day MA at 1.2930 at the start of the week and is now consolidating above the 100-day MA at 1.2870. The pair’s currently trading at support line, which connects March and June lows. Decline below the recent lows and 61.8% retracement of June-August rally will open the way down towards the next Fibo level at 1.2735 and 200-day MA at 1.2640. Resistance levels are at 1.2930 and 1.3000. 





USD/JPY: dollar is corrected to Kijun-sen

Expanding  bullish Ichimoku Cloud with rising Senkou Span A; a cancelled golden cross of Tenkan-sen and Kijun-sen; the prices are returned to the support of Tenkan and Kijun and may go higher.

USD/JPY: dollar can’t breakout SSA’s resistance

Narrow bearish Ichimoku Cloud with horizontal Senkou Span A and B; a golden cross of Tenkan-sen and Kijun-sen, but the lines are horizontal; the Bulls can’t breaking out the resistance of upper border of the Cloud and the market may return to 113.00.


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