INTERNATIONAL CURRENCY BUZZ :
- Forex – GBP/USD slips lower after U.K. data, eyes on BoE meeting
- Forex – Aussie and kiwi move lower in late trade
- Forex – Yen holds weaker in Asia as signals grow for BoJ policy changes
EUR/USD is currently trading with a bullish bias. Yesterday, the pair traded perfectly long as previously forecasted but is yet to reach our set target resistance level at 1.1239. The daily candle is still pretty much bullish and will likely push the price further to the upper side. Thus, during this intraday, we expect a possible bullish price rally towards 1.1239 or even higher to 1.1264. This pair should be traded alongside EUR/JPY, AUD/USD, NZD/USD and GBP/USD. These pairs have a strong positive correlation of up to +0.96 and will have a similar price action during this intraday.
The pound slipped lower against the U.S. dollar on Wednesday, after data showed that U.K. service sector activity contracted for the first time in more than three years and as investors eyed the Bank of England’s policy meeting on Thursday. GBP/USD hit 1.3287 during European morning trade, the session low; the pair subsequently consolidated at 1.3334, edging down 0.17%.Cable was likely to find support at 1.3169, the low of August 2 and resistance at 1.3480, the high of July 15.Research group Markit said its U.K. services purchasing managers’ index dropped to 47.4 last month from a reading of 52.3 in June. It was the lowest level since December 2012.The weak data added to expectations for a rate cut by the BoE at its policy meeting on Thursday.
- BUY GBP/USD ABOVE 1.3370 TGT 1.3390 1.3430 SL 1.3340
- SELL GBP/USD BELOW 1.3160 TGT 1.3130 1.3100 SL 1.3190