Mid Week Update of GBP/USD

As we mentioned on our previous blog that for GBP/USD to go down it needs to go below 61.8% fibo which is working as a strong support at this point.

Please see the chart below where it shows clearly that GBP/USD keep bouncing back from that level.

We have couple of days left for this week. It will be interesting to see if GBP/USD can keep itself above that level for the week.

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GBP/USD week of June 27th - July 2nd.

 G20 Toronto Summit came up with a commitment to reduced deficits by 2013. It’s good move for G20 countries if they can keep their commitment and work towards it.

How it will effect currencies? We will find that out when market will open in few hours time.

We are going to analyze GBP/USD based on technical not on G20 commitment.

On Friday, GBP/USD closed above 1.5057 which is just above 61.8% fibo (See chart below).  Now, we will be watching this level. If GBP/USD can continue stay above that level then there will be a good chance for this pair to reach 1.53 level by end of next week.

In economic calendar, there are few important releases next week which can move the currency in either direction:

1. Nationwide HPI: Publication time unknown at the moment.
2. Net Lending to Individuals: Published on Tuesday at 8:30 GMT.  
3. GfK Consumer Confidence: Published on Tuesday at 23:00 GMT.
4. Final GDP: Published on Wednesday at 8:30 GMT.
5. Current Account: Published on Wednesday at 8:30 GMT, and overshadowed by the GDP.
6. Manufacturing PMI: Published on Thursday at 8:30 GMT.
7. BOE Credit Conditions Survey: Published on Thursday at 8:30 GMT, and somewhat overshadowed by the PMI release.
8. Construction PMI: Published on Friday at 8:30 GMT.

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EUR/USD Weekly Outlook Jun 21-25th

Euro/Usd had a good run last two weeks. After reaching all time low at 1.1875 Euro/USD bounced back against the dollars.

In weekly chart (see below), we can see a bullish move and expecting to continue this next week.
Looking at next resistance for Euro/Usd at 1.2658 which is a 23.6% fibo retracement (high 1.5160 and low 1.1875) and also touching point of 10 sma.

Breaking below 1.23 poses a risk to go lower and re-test the recent low.

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GBP/USD Need To Break 1.4700 For Next Leg Up

GBP/USD moving in a very tight range between 1.4700 and 1.4300 since May. Though some positive data came out of UK this week but that wasn't strong enough to break 1.4700.
The Guardian News Paper reported that "The UK's recovery is likely to lag European neighbours France and Germany this year, according to economists at Standard & Poor's, who warn this morning that uncertainty around gaping budget deficits could hurt growth throughout the region."
Investor's are not confident on European growth this year due to the big budget deficit on few European Countries.
Back to the currency, we think GBP/USD needs to break 1.4700 and stay above that level to move further up.
Daily and Weekly positive so far and that pointing some positive bias towards this currency pair. NFP report is due tomorrow and that will move the pair in either direction. If GBP/USD can close the week in positive note then we think it will have better chance to break 1.4700 level by next week.

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