GBP/USD: Short For 1.5530
Growth Aces | Aug 20, 2015 07:43AM ET
GROWTHACES.COM Forex Trading Strategies
GBP/USD: short at 1.5680, target 1.5530, stop-loss 1.5755, risk factor ***
EUR/CHF: long at 1.0780, target 1.1170, stop-loss 1.0640, risk factor *
AUD/NZD: long at 1.1170, target 1.1440, stop-loss 1.1050, risk factor **
EUR/USD: Be Careful Not To Lean Too Dovish
GBP/USD Falls After UK Retail Sales Disappoint
(short for 1.5530)
- British retail sales volumes inched up 0.1% mom to show 4.2% yoy gain, below the market forecast of 0.4% mom gain.
- However, the data are not as bad as they seem. Excluding fuel, sales rose 0.4% mom and 4.3% compared to a year ago, as expected. A 2.6% fall in auto fuel sales was partly offset by a 3.6% rise in the sales of household goods. The Office for National Statistics said the sales of household electrical appliances and furniture rose strongly on the month, probably reflecting a pick-up in Britain's housing market.
- A pick-up in wage growth this year and near-zero inflation have helped to restore some of the spending power lost in the years after the financial crisis. A recent rise in the value of the GBP, which made imported goods cheaper, and a renewed plunge in global oill prices have further helped consumers. That is why we may expect a recovery in consumption in the coming quarters.
- The GBP/USD fell to 1.5607 after the data from 1.5662 before the release, but recovered soon. We do not change our short GBP/USD position taken at 1.5680.
Significant technical analysis' levels:
Resistance: 1.5717 (high Aug 18), 1.5739 (high Jul 1), 1.5775 (high Jun 30)
Support: 1.5598 (55-dma), 1.5588 (30-dma), 1.5563 (low Aug 18)
Source: Growth Aces Forex Trading Strategies
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