GBP/USD – Limited Movement as US Pending Home Sales Disappoints

GBP/USD is starting the week in quiet fashion, as the pair trades in the mid-1.62 range on Monday. In economic news, US Pending Home Sales posted a decline of 1.0%, compared to last month’s gain of 3.3%. In the UK, Mortgage Approvals and Net Lending to Individuals met expectations.

British releases were as expected on Monday. Mortgage Approvals dipped to 64 thousand, slightly short of the estimate of 67 thousand. Net Lending to Individuals also softened, with a reading of 3.2 billion pounds, compared to 3.4 billion a month earlier. This edged above the estimate of 3.1 billion pounds. On Tuesday, the UK releases Current Account, the country’s first key release of the week. The indicator is closely related to currency demand, so traders should treat it as a market-mover.

Last week, US, Core Durable Goods Orders posted a strong gain of +0.7%, bouncing back from the previous reading of -0.8%. Durable Goods Orders continues to take its riders on a roller coaster ride, plunging 18.2% in August, compared to a huge gain of 22.6% a month earlier. Unemployment Claims rose to 293 thousand, within expectations.

 

GBP/USD for Monday, September 29, 2014

GBP/USD September 29 at 14:40 GMT

GBP/USD 1.6236 H: 1.6262 L: 1.6215

 

GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.6000 1.6141 1.6263 1.6382 1.6484 1.6605

 

  • GBP/USD has been uneventful,  unable to build momentum in either direction.
  • 1.6263 is providing weak support. 1.6141 is stronger.
  • 1.6382 is a strong resistance line.
  • Current range: 1.6263 to 1.6382.

Further levels in both directions:

  • Below: 1.6263, 1.6141, 1.6000 and 1.5864
  • Above: 1.6382, 1.6484, 1.6605, 1.6755 and 1.6843

 

OANDA’s Open Positions Ratio

GBP/USD ratio is evenly split between long and short positions, indicative of a lack of trader bias as to what direction we can expect the pair to take.

 

GBP/USD Fundamentals

  • 8:30 British Net Lending to Individuals. Estimate 3.1B. Actual 3.2B.
  • 8:30 British M4 Money Supply. Estimate 0.4%. Actual 0.3%.
  • 8:30 British Mortgage Approvals. Estimate 66K. Actual 64K.
  • 12:30 US Core PCE Price Index. Estimate 0.0%. Actual 0.1%.
  • 12:30 US Personal Spending. Estimate 0.5%. Actual 0.5%.
  • 12:30 US Personal Income. Estimate 0.3%. Actual 0.3%.
  • 14:00 US Pending Home Sales. Estimate -0.4%. Actual -1.0%.

* Key releases are highlighted in bold

*All release times are GMT

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.