GBP/USD Struggles To Break 1.3400 Handle
GBP/USD: Still Struggling To Break The 1.3400 Handle Ahead of UK Data.
GBP/USD still trading dull through the week with failure to close above 1.3400 level, trading flat with consolidation congestion. The pair dipped today to 1.3364 at 20-EMA and tested successfully with a rebounce. Yesterday, the cable found some support and managed to overcome losses after plunging to 1.3331, and closed at 1.3385 after disappointing U.S GDP outcome 3.2% while expectations were at 3.3% and above.
Today, the pound awaits Current Account and Final GDP for last quarter of 2017 which should give push GBP/USD into newer levels and break out of the triangle that is seen stuck inside. As for the U.S Dollar, Core Durable Goods data + Core PCE Index ( Feds favorite indicator ), both are due as NY session opens.
GBP/USD technical overview:
Closing price: 1.3385
Target price: None
Resistance levels: 1.3400 1.3454*
Support levels: 1.3314, 1.3235+/-
Trend reversal price: 1.3454*
Comment: The market is still biased down, contained under 1.3454* resistance. A roll off from this week’s sideways days open up potential for selloffs to 13285 and chance to stretch for the low 13200’s. Trade may again congest in Mon-last Friday’s ranges, but tight congestion will bear flag. A close over 1.3454* is needed for a short term reversing upturn.