INTERNATIONAL CURRENCY BUZZ :
- Forex – GBP/USD edges lower on weak U.K. PMI report
- Forex – Aussie holds steady, kiwi edges higher in late trade
- Forex – Aussie retraces earlier losses as China PMIs diverge
EUR/USD is currently trading with a bearish bias. During the previous trading day on 29th July 2016, the pair traded perfectly long as previously forecasted and even hit our target resistance level 1.1185. We expect this level to mark the end of the five wave cycle with wave (5) ending at 1.1185-1.1188. Any bearish rebound from this level will signal the unfolding of a corrective three wave cycle to the lower side while a break above it will lead to a possible bullish price rally towards 1.1386. This pair should be traded alongside EUR/HKD, EUR/SGD, GBP/USD, AUD/USD, and NZD/USD. These pairs have a strong positive correlation of up to +0.93 and will have a similar price action during this intraday.
The pound edged lower against the U.S. dollar on Monday, after the contraction in U.K. manufacturing activity in July was confirmed to be worse that initially estimated, fueling further concerns over the outlook for growth in Britain.GBP/USD hit 1.3201 during European morning trade, the session low; the pair subsequently consolidated at 1.3208, slipping 0.14%. Cable was likely to find support at 1.3070, the low of July 27 and resistance at 1.3305, the high of July 29.Research group Markit said its U.K. manufacturing purchasing managers’ index fell to 48.2 last month from a reading of 52.1 in June.It was the lowest level since early 2013 and worse than a preliminary report released on July 22 that had shown a drop to 49.1 in July.
- BUY GBP/USD ABOVE 1.3310 TGT 1.3340 1.3370 SL 1.3280
- SELL GBP/USD BELOW 1.3100 TGT 1.3080 1.3050 SL 1.3130