GBPUSD Might Struggle To Keep Going - Above 1.5680
Aayush Jindal
Key Highlights
British Pound continued to weaken against the US Dollar after failing to trade above 1.5680.
There is a monster bearish trend line formed on the hourly chart of GBPUSD, which is acting as a resistance for the pair.
There are a few major events lined up in the UK today, including the minutes of the BOE MPC meetings.
Australian Consumer Price Index released by the RBA and republished by the Australian Bureau of Statistics posted a rise of 0.7% in Q2 2015, compared with the forecast of 0.8%.
GBPUSD Technical AnalysisThe GBPUSD pair declined recently and fell close to the 1.5520 support area where buyers managed to hold the losses. There is a bearish trend line formed on the hourly chart of the GBPUSD pair, which is acting as a barrier for the pair. Moreover, the 23.6% Fib retracement level of the last drop from the 1.5672 high to 1.5530 low is also around the same trend line.One positive sign to note is that the pair is above the 200 hourly simple moving average, which might encourage buyers moving ahead. If there is a break above the highlighted trend line, then a move towards the 200 hourly SMA is possible. However, the most important hurdle in that situation would be around the 50% Fib retracement level of the last drop from 1.5672 high to 1.5527 low.On the downside, the last low 1.5530 may act as a support. A break below it could set the pace for more losses in the near term.BOE Meeting MinutesThere are a few major releases lined up today in the UK including the including the minutes of the BOE MPC meeting and the inflation report. Both releases have the potential to cause swing moves in the GBPUSD pair moving ahead.Australian CPIIn Australia, the Consumer Price Index, which is a measure of price movements by the comparison between the retail prices was released by the RBA and republished by the Australian Bureau of Statistics. The outcome was a bit lower compared with forecast of a 0.8% increase in Q2 2015. The Australian CPI came in at 0.7%, which ignited a downside move in the Aussie Dollar pairs.
One positive sign to note is that the pair is above the 200 hourly simple moving average, which might encourage buyers moving ahead. If there is a break above the highlighted trend line, then a move towards the 200 hourly SMA is possible. However, the most important hurdle in that situation would be around the 50% Fib retracement level of the last drop from 1.5672 high to 1.5527 low.On the downside, the last low 1.5530 may act as a support. A break below it could set the pace for more losses in the near term.BOE Meeting MinutesThere are a few major releases lined up today in the UK including the including the minutes of the BOE MPC meeting and the inflation report. Both releases have the potential to cause swing moves in the GBPUSD pair moving ahead.Australian CPIIn Australia, the Consumer Price Index, which is a measure of price movements by the comparison between the retail prices was released by the RBA and republished by the Australian Bureau of Statistics. The outcome was a bit lower compared with forecast of a 0.8% increase in Q2 2015. The Australian CPI came in at 0.7%, which ignited a downside move in the Aussie Dollar pairs.
One positive sign to note is that the pair is above the 200 hourly simple moving average, which might encourage buyers moving ahead. If there is a break above the highlighted trend line, then a move towards the 200 hourly SMA is possible. However, the most important hurdle in that situation would be around the 50% Fib retracement level of the last drop from 1.5672 high to 1.5527 low.On the downside, the last low 1.5530 may act as a support. A break below it could set the pace for more losses in the near term.BOE Meeting MinutesThere are a few major releases lined up today in the UK including the including the minutes of the BOE MPC meeting and the inflation report. Both releases have the potential to cause swing moves in the GBPUSD pair moving ahead.Australian CPIIn Australia, the Consumer Price Index, which is a measure of price movements by the comparison between the retail prices was released by the RBA and republished by the Australian Bureau of Statistics. The outcome was a bit lower compared with forecast of a 0.8% increase in Q2 2015. The Australian CPI came in at 0.7%, which ignited a downside move in the Aussie Dollar pairs.