GBP/USD Signals Update
Yesterday's signal expired without being triggered.
Today’s GBP/USD Signals
No signal is given today.
GBP/USD Analysis
The price fell yesterday again, fairly weakly, with the GBP being dragged down by the news that the Eurozone now has negative inflation. The fact of deflation ensures that weakness continues in the EUR which is still dspite recent changes highly correlated with the GBP. Later yesterday, following the FOMC release, the pair rose back near to opening prices, but has fallen again overnight. We open this morning very close to yesterday's lows.
I wrote yesterday that it was quite likely that if we broke below 1.5128, we would find support somewhere before 1.5000. This is logical, but just where that support might come in is a mystery. Looking above, there are no obvious resistance levels anywhere nearby, so I cannot use support and resistance methods to look for any trades in this pair today. This might be a good thing as we have some key news events today and the Non-Farm Payrolls data release tomorrow, and it might only be at the end of these releases that the market gets back on a more predictable and liquid footing.
There are high-impact data releases scheduled today concerning both the GBP and the USD. At Noon London time there will be a release of the Bank of England's Official Bank Rate plus the MPC statement. Later at 1:30pm there will be a release of the U.S. Unemployment Claims data.