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GBP/USD – Pound Loses Ground On Mixed US Data

GBP/USD has lost ground on Tuesday, as the pair trades at the 1.68 line in the North American session. In economic news, British BBA Mortgage Approvals continues to weaken and missed expectations. Later in the day, Bank of England Governor Mark Carney speaks in London. In the US, the news was mixed, as manufacturing numbers slid, while consumer confidence had another strong outing.

In the UK, Tuesday’s only economic release was a disappointment, as BBA Mortgage Approvals softened for the third consecutive month. The indicator dropped to 42.2 thousand, well off the estimate of 45.2 thousand. This was the lowest level we’ve since last September, and could point to trouble in the UK housing sector. Later on Tuesday, we’ll hear from BOE head Mark Carney, and the markets will be listening for any hints regarding the possibility of a rate hike.

US Core Durable Goods Orders, the primary gauge of manufacturing activity, disappointed in April. The indicator slumped to just 0.1%, missing the estimate of 0.2%. This compared to a strong gain of 2.0% last month. Durable Goods Orders dropped to 0.8%, but did beat the estimate of -0.5%.


GBP/USD for Tuesday, May 27, 2014

Forex Rate Graph 21/1/13

GBP/USD May 27 at 15:00 GMT

GBP/USD 1.6804 H: 1.6882 L: 1.6795


GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.6549 1.6705 1.6765 1.6896 1.7000 1.7210


Further levels in both directions:


OANDA’s Open Positions Ratio

GBP/USD ratio is almost unchanged in Tuesday trade. This is not consistent with the movement of the pair, as the pound has lost ground. A large majority of the open positions in the GBP/USD ratio are short, indicative of a trader bias towards the dollar posting gains against the pound.

GBP/USD has weakened on Tuesday. In the North American session, the pair has edged upward.


GBP/USD Fundamentals

*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 [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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