The USD index fell from 94…
GBP/USD: outlook for August 25 - September 1
GBP/USD made another break to the downside. It fell below the 100-day MA (1.2875) and 1.2850 and hit a near-two-month low.
The outlook for the British pound is still clouded by concerns about Brexit risk and economic fundamentals. Data showed revised quarterly growth of 0.3% in the second quarter, while household spending remained weak.
The British government is trying to move forward formal Brexit discussions. There was a series of position papers outlining potential compromises over key issues. However, the nation’s future still remains very uncertain.
The UK economic calendar will be light. Monday is a summer bank holiday, so trading volumes will decrease. The most important release – manufacturing PMI – will come out on Friday.
Technical picture continues to look bearish. The next Fibonacci level of June-August advance is at 1.2735. Below it, support will be at 1.2650 (200-day MA). Pullbacks to the upside will meet resistance at 1.2850 and 1.2930 ahead of 1.3000.
The last consolidation resulted in a massive bullish rally. Finally, the price faced resistance at 1.1365, so bears are likely going to...
The 55 Moving Average has acted as a resistance, so there’re a “Shooting Star” and a “Doji”.
GBP/CHF broke pivotal resistance level 1…