On Monday the UK pound was under pressure before the trading session opened in the States. The euro/pound cross wouldn’t let it rise. Due to a fall in the dollar and a correction on the pound/dollar cross, it rebounded to the 90th degree.
On Tuesday at 11:30 EET some preliminary Q2 GDP data for the UK will be out. I’m inclined to believe that the GDP values will be no better or worse than expected. This is why I’ve got my eyes on a growth. If the GDP assessment disappoints traders, the pound will shed 100 points or more. This indicator has a powerful effect on the rate of the currency.
Seller activeness is low at the moment due to the upcoming FOMC meeting. The buyers are trying to take the rate back to 1.5675 on the back of the general fall of the USD. This is the first target for the pound if it’s to rise in the future. The stochastic has made a U-turn upwards around the 20% level. The weekly indicators are doing the opposite by shoving it downwards. Conditions for turbulence and high volatility have been created.
The weekly indicators are facing down. The price is under the trend line. The 1.5169 target is still on the cards whilst the buyers haven’t strengthened above 1.5675.