GBP/USD has shown some volatility on Tuesday and is trading in the low-1.62 range on Tuesday. In economic news, the Current Account widened last month, while Final GDP posted a strong gain of 0.9% in Q2. In the US, CB Consumer Confidence fell to 86.0 points, well short of expectations.
The pound moved has moved in both directions on Tuesday, reflective of mixed UK numbers. The current account deficit ballooned to 23.1 billion pounds, compared to 16.9 billion in the previous release. There was much better news from Final GDP, which is released each quarter, thus magnifying the impact of each release. The indicator posted a sharp gain of 0.9% in Q2, its best showing since Q3 of 2012. The pound has been unable to sustain any momentum in either direction, as it trades in the low-1.62 range.
Earlier in the week, US Pending Home Sales posted a decline of 1.0%, compared to last month’s gain of 3.3%. The important housing indicator has shown strong movement, resulting in readings that have been well off market estimates. US housing indicators continue to paint a mixed picture, as New Home Sales jumped last month, while Existing Home Sales softened and missed expectations.
GBP/USD for Tuesday, September 30, 2014
GBP/USD September 30 at 15:45 GMT
GBP/USD 1.6218 H: 1.6287 L: 1.6167
- GBP/USD posted gains in the Asian session, breaking above resistance at 1.6263. The pair then reversed direction in the European session dropping to a low of 1.6167 and putting pressure on support at 1.6141. The pound then moved higher and crossed above the 1.62 line. In the North American session, GBP/USD is steady.
- 1.6141 is providing strong support.
- 1.6263 is an immediate resistance line. 1.6382 is stronger.
- Current range: 1.6141 to 1.6263.
Further levels in both directions:
- Below: 1.6141, 1.6000, 1.5864 and 1.5717
- Above: 1.6263, 1.6382, 1.6484, 1.6605 and 1.6755
OANDA’s Open Positions Ratio
GBP/USD ratio is pointing to gains in short positions on Tuesday. This is consistent with the pair’s movement, as the pound has posted small losses on the day. The pair is almost evenly split between long and short positions, indicative of a lack of trader bias as to what direction we can next expect the pair to take.
- 8:30 British Current Account. Estimate -16.9B. Actual-23.1B.
- 8:30 British Final GDP. Estimate 0.8%. Actual 0.9%.
- 8:30 British Index of Services. Estimate 1.0%. Actual 1.0%.
- 8:30 British Revised Business Investment. Estimate 4.0%. Actual 3.3%.
- 13:00 US S&P Composite-20 HPI. Estimate 7.5%. Actual 6.7%.
- 13:45 US Chicago PMI. Estimate 61.6 points. Actual 60.5 points.
- 14:00 US CB Consumer Confidence. Estimate 92.2 points. Actual 86.0 points.
- 17:30 External BOE MPC Member David Miles Speaks.
* Key releases are highlighted in bold
*All release times are GMT