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13 Jun 2013
GBPUSD steady ahead of Retail sales
FXstreet.com (London) - The GBP/USD has been relatively stead ahead of the retail sales data coming up
GBP/USD over done?
With the US data coming up, focus will be retail sales, but there will be the usual initial jobless claims. For retail sales, Annette Beacher, head for Asia Research at TD Securities said that they are expecting to see further improvement in May, with sales advancing by +0.4% M/M (in line with consensus) due to warmer weather and strong auto sales. TD expects 340k (mkt 346k) for initial claims. The market is also digesting the reality of the UK economy, i.e. With low wages being the substitute for a higher jobless claimant count in the UK economy, perhaps the pound might be looking somewhat overvalued trading at these levels?
Commerzbank are of the opinion on a technical basis.
GBP/USD 200 d ma last defence
Axel Rudolph ,Senior Analysts for Commerbank said that GBP/USD is nearing the top of its 3 month up channel and 200 day moving average at 1.5701/03. This resistance area they expect to cap. They suspect that we are now trading towards the end of the corrective move higher. He explained that break below the 1.5490 June 7 low is needed to alleviate immediate upside pressure and signal a slide back to the 55 day moving average at 1.5334 en route to the base of the channel at 1.5044. However, he warns that above 1.5703 lies the 1.5797 200 week moving average and 1.6040, the 78.6% Fibonacci retracement of the down move seen this year.
GBP/USD over done?
With the US data coming up, focus will be retail sales, but there will be the usual initial jobless claims. For retail sales, Annette Beacher, head for Asia Research at TD Securities said that they are expecting to see further improvement in May, with sales advancing by +0.4% M/M (in line with consensus) due to warmer weather and strong auto sales. TD expects 340k (mkt 346k) for initial claims. The market is also digesting the reality of the UK economy, i.e. With low wages being the substitute for a higher jobless claimant count in the UK economy, perhaps the pound might be looking somewhat overvalued trading at these levels?
Commerzbank are of the opinion on a technical basis.
GBP/USD 200 d ma last defence
Axel Rudolph ,Senior Analysts for Commerbank said that GBP/USD is nearing the top of its 3 month up channel and 200 day moving average at 1.5701/03. This resistance area they expect to cap. They suspect that we are now trading towards the end of the corrective move higher. He explained that break below the 1.5490 June 7 low is needed to alleviate immediate upside pressure and signal a slide back to the 55 day moving average at 1.5334 en route to the base of the channel at 1.5044. However, he warns that above 1.5703 lies the 1.5797 200 week moving average and 1.6040, the 78.6% Fibonacci retracement of the down move seen this year.