GBP/USD – Pound Steady in Light Trade

GBP/USD is steady on Monday, as the pair trades in the mid-1.55 range in the North American session. British markets were closed on Thursday and Friday, and traders can expect a very quiet start to the week. There are no UK or US releases on Monday.

Both the UK and US released GDP for Q3 last early last week, ahead of the Christmas holiday. In the US, GDP was red-hot in Q3, jumping 5.0%, ahead of the estimate of 4.6%. This marked the indicator’s strongest gain since the third quarter of 2003. The US economy is expected to continue to surge in 2015, driven by increased consumer spending and lower oil prices.

In the UK, British GDP came in at 0.7% in the Q3, matching the forecast. This was slightly lower than the revised release for Q2 of a 0.8% gain, but still a very respectable figure. Current Account surprised as the deficit ballooned to GBP 27.0 billion, much higher than the estimate of GBP 21.1 billion. Mortgage Approvals softened for a fifth straight month, dropping to 36.7 thousand. This missed the forecast of 37.3 thousand.

Elsewhere in the US, the news was mixed. Core Durable Goods Orders and Durable Goods Orders both disappointed with declines in November. UoM Consumer Sentiment continued to rise, hitting 93.6 points in December. This marked its highest level since February 2007, as the US consumer remains very optimistic about the economy as we move into 2015. Unemployment Claims posted another solid reading, indicative of a strong US labor market.

GBP/USD for Monday, December 29, 2014

GBP/USD December 29 at 17:00 GMT

GBP/USD 1.5532 H: 1.5586 L: 1.5523

 

GBP/USD Technical

S3 S2 S1 R1 R2 R3
1.5282 1.5392 1.5505 1.5644 1.5717 1.5864

 

  • GBP/USD edged higher in the Asian session, but backtracked and posted losses in European trade. The US dollar remains under pressure in the North American session.
  • 1.5644 remains a strong resistance line.
  • 1.5505 is a weak support level. 1.5392 is stronger.
  • Current range: 1.5505 to 1.5644

Further levels in both directions:

  • Below: 1.5505, 1.5392, 1.5282 and 1.5165
  • Above: 1.5644, 1.5717, 1.5864, 1.6000 and 1.6141

 

OANDA’s Open Positions Ratio

GBP/USD ratio continues to maintain a majority of long positions, indicative of trader bias towards the pound continuing to move higher.

GBP/USD Fundamentals

* There are no UK or US releases on Monday.

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.