GBPUSD Looks Nervous and Awaits UK CPI Report for Next Move
Aayush Jindal
Key Highlights
British Pound looks nervous ahead of a key release in the UK today, as the GBPUSD traded lower.
GBPUSD cleared an important support trend line to trade towards the 200 hourly moving average.
UK Consumer Price Index, measuring the price movements by the comparison between the retail prices will be published by the National Statistics today.
In Australia, the New Motor Vehicle Sales released by the Australian Bureau of Statistics posted a decline of 1.3% in July 2015, compared with the preceding month.
GBPUSD Technical AnalysisThe GBPUSD pair recently climbed towards the 1.5680 resistance area where it found sellers and as a result, there was a downside reaction. There are a couple of bullish trend lines formed on the hourly chart, out of which the first one was broken during the slide. However, the second one managed to hold the downside, as it is also aligned with the 200 hourly simple moving average.However, the pair breached the 100 SMA, which is a warning sign in the near term, and might ignite more losses. If the pair corrects higher from the current levels, then an initial resistance could be around the 23.6% Fib retracement level of the last drop from the 1.5687 high to 1.5573 low. The most important hurdle for buyers could be around the 100 hourly SMA, as it is also sitting around the 38.2% fib level.Lastly, the broken trend line might also come into play if there is any major upside move. On the downside, a break below the 200 SMA might call for a retest of the last pivot at 1.5500.Australian New Motor Vehicle SalesEarlier during the Asian session, the New Motor Vehicle Sales that measures motor vehicle sales in Australia was released by the Australian Bureau of Statistics. The forecast was lined not lined for a decrease in sales in July 2015, compared with the preceding month. However, the outcome came missed the mark, as the Australian New Motor Vehicle Sales declined by 1.3%.The report stated that the “Sales of Passenger and Sports utility vehicles increased by 0.2% and 0.7% respectively while Other vehicles increased by 0.4%”.There was no major downside reaction noted in the AUDUSD pair, as it continued to move inside a tiny range.
However, the pair breached the 100 SMA, which is a warning sign in the near term, and might ignite more losses. If the pair corrects higher from the current levels, then an initial resistance could be around the 23.6% Fib retracement level of the last drop from the 1.5687 high to 1.5573 low. The most important hurdle for buyers could be around the 100 hourly SMA, as it is also sitting around the 38.2% fib level.Lastly, the broken trend line might also come into play if there is any major upside move. On the downside, a break below the 200 SMA might call for a retest of the last pivot at 1.5500.Australian New Motor Vehicle SalesEarlier during the Asian session, the New Motor Vehicle Sales that measures motor vehicle sales in Australia was released by the Australian Bureau of Statistics. The forecast was lined not lined for a decrease in sales in July 2015, compared with the preceding month. However, the outcome came missed the mark, as the Australian New Motor Vehicle Sales declined by 1.3%.The report stated that the “Sales of Passenger and Sports utility vehicles increased by 0.2% and 0.7% respectively while Other vehicles increased by 0.4%”.There was no major downside reaction noted in the AUDUSD pair, as it continued to move inside a tiny range.
However, the pair breached the 100 SMA, which is a warning sign in the near term, and might ignite more losses. If the pair corrects higher from the current levels, then an initial resistance could be around the 23.6% Fib retracement level of the last drop from the 1.5687 high to 1.5573 low. The most important hurdle for buyers could be around the 100 hourly SMA, as it is also sitting around the 38.2% fib level.Lastly, the broken trend line might also come into play if there is any major upside move. On the downside, a break below the 200 SMA might call for a retest of the last pivot at 1.5500.Australian New Motor Vehicle SalesEarlier during the Asian session, the New Motor Vehicle Sales that measures motor vehicle sales in Australia was released by the Australian Bureau of Statistics. The forecast was lined not lined for a decrease in sales in July 2015, compared with the preceding month. However, the outcome came missed the mark, as the Australian New Motor Vehicle Sales declined by 1.3%.The report stated that the “Sales of Passenger and Sports utility vehicles increased by 0.2% and 0.7% respectively while Other vehicles increased by 0.4%”.There was no major downside reaction noted in the AUDUSD pair, as it continued to move inside a tiny range.