GBP/USD After following a slump rally for two days in a row, the Cable appeared to head up for recovery today. In the early hours, the GBP/USD pair was lingering near 1.2433 level or 23.6% Fibonacci level. However, in the middle of the day, some upbeat UK economic data encouraged the pair bulls. Though there was a positive drift in the pair’s movements, the gains remained limited under 1.2449 level or 50% Fib level.
Anyhow, the overhead lying strong SMA conflux would have confined any additional growth in the pair’s daily movements. GBPUSD 240 Min 17 July 2019 More Most of the UK economic reports released on Wednesday came in-line with the consensus estimates. The most crucial June YoY CPI data recorded 2%, in-line with the market hopes as well as the previous figures. Nevertheless, the June YoY Core CPI reported 0.1% above the last 1.7%.
Notably, the June YoY UK Retail Price Index and PPI Core Output remained the same as the market expectations. Meanwhile, today, Prime Minister Theresa May broadcasted a piece of advice to her successor. May would leave the office in 7 days, allowing the next PM to take the lead. She mentioned that “Whatever path we take must be sustainable for the long-term – so that delivering Brexit brings our country back together.
Inability to make an intense price action kept the pair’s daily volatility confined within this short term SMA. Even if the pair breaches and crosses above this aforementioned resistance, bulls would set the 100-day and 200-day SMA confluence as their next target. EURUSD 240 Min 17 July 2019 More Quite noticeably, the June YoY Eurozone CPI data and May Construction Output data release caught market attention. The Eurozone June YoY CPI and CPI Core reported 0.1% higher than the street expectations.
Somehow, the low volatile May YoY Construction Output came around 2.0% over 2.4% forecasts, pleasing the bears. The pair appeared to respect the descending triangle pattern, revealing a nearby breakdown. The Relative Strength Index continued to move hand-in-hand with the pair’s movements, showing higher chances of reversal than a continuation.
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