GBP/USD Weekly Analysis (week of 04-08/01)

This in-between state for Pound/Dollar is reflected by market data published as United Kingdom Construction PMI published yesterday at 9:30 AM came out at 54.6, falling short of the 55 projections and continuing its decline from the previous 54.7 figure. United States Non Farm Payrolls published today at 1:30 PM came out at -140,000, falling short of the 71,000 projections and continuing its decline from the previous 336,000 figure. The United States Unemployment Rate beat expectations of 6.8 with new data release of 6.7, marks no change over the previous data of 6.7.

While the British Pound was pretty flat today, mixed performances were seen elsewhere as the Pound/Yen traded around 140.92, with no major change. The Kiwi dropped 0.23% (16 pips) to 0.724.

The upper Bollinger band is at 1.37 and the lower is 1.3357.

This downslide might be related to financial indicators data published earlier as the United Kingdom's Construction PMI fell short of the 55 projections, at 54.6 and continued its downward trajectory from the previous figure of 54.7.

In contrast, positive data for The British Pound reported earlier when United Kingdom Services PMI was released shows an improvement to 49.4 from the preceding data of 47.6, but falls short of the projected 49.9. The United Kingdom Composite PMI released earlier shows an improvement to 50.4 from the preceding data of 49, but falls short of the projected 50.7.

Taking a wider perspective, performance of these other symbols usually suggests a setback for the pound/dollar as USD/SGD is trading around 1.3242 (up 66 pips).

Positive performance can be seen looking at other symbols, as the Pound/Yen is trading at 140.76 after gaining 0.41%.

The upper Bollinger band is at 1.3729 and the lower is 1.3293.

The market will be looking forward to the upcoming release of the following indicators: United Kingdom House Price Index is expected today at 8:30 AM. United Kingdom Labour Productivity (Q3) is scheduled for today at 9:30 AM. United States Non Farm Payrolls are expected to decline to 71,000 when its preceding data was 245,000, data will be available today at 1:30 PM.

GBP/USD now trading at 1.3612 after United States Crude Oil Inventories new data of -8.01 million was released, above the previous figure.

The Pound/Yen gained 0.41% from 139.88 to 140.45 (57 pips). The Canadian Dollar went down to 1.2673 (105 pips). The Kiwi is green with a 0.48% gain (34 pips), to 0.7292 levels.

The upper Bollinger band is at 1.3735, indicating a negative correction might be next. Overall, looking at the technical analysis landscape, it seems a reverse of course in the short term might be next for the Pound/Dollar

The United Kingdom Services PMI released earlier shows an improvement to 49.4 from the preceding data of 47.6, but falls short of the projected 49.9. The United Kingdom Composite PMI released earlier shows an improvement to 50.4 from the preceding data of 49, but falls short of the projected 50.7.

The United Kingdom Construction PMI is projected to outperform the last figure with 55, while it previously stood at 54.7, figure will be published today at 9:30 AM. The United States's new ISM Non-Manufacturing PMI (Dec) data will be available today at 3:00 PM. Data is expected to decline to 54.6 from its previous value of 55.9.

Pound/Dollar social media highlights:

GBP/USD mostly unaffected by the United States ISM Manufacturing PMI (Dec) beating expectations with new data of 60.7, now trading at 1.363.

The New year year high for the New-Zealand Dollar is at 0.7215. The Canadian Dollar fell to 1.2675, hitting a 2 year low. At 1.3189, USD/SGD is down to its lowest value in 2 years.

The Pound's nearest support level is at 1.3365. At 1.36, pound/dollar made an initial breakout above the 5 day Simple Moving Average. The upper Bollinger band is at 1.3734, indicating a negative correction might be next. Overall, technical indicators suggest the Pound has no obvious direction for the immediate future.

The United Kingdom Manufacturing PMI beat expectations of 57.3 with new data release of 57.5. This is also a step forward from the previous data of 55.6. The United States ISM Manufacturing Employment (Dec) released yesterday at 3:00 PM with a figure of 51.5, This is better than the previous number of 48.4.

The United Kingdom Services PMI is expected today at 9:30 AM. The United Kingdom Composite PMI figure is projected at 50.7 while it previously stood at 50.7, data will be released today at 9:30 AM.

The British Pound social media highlights:

After opening at 1.3665, GBP/USD reached 1.3704, breaking a 2 year record. Later, it lost 142 pips and is now trading at 1.3561.

Nonetheless, encouraging indicators for Pound/Dollar published earlier when the United Kingdom Manufacturing PMI beat expectations of 57.3 with the new data release of 57.5. This is also a step forward from the previous data of 55.6.

The pound's nearest support level is at 1.3365, followed by 1.3216 at the next level. At 1.36, pound/dollar made an initial breakout below the 5 day Simple Moving Average. The upper Bollinger band is at 1.3717 and the lower is 1.3256. Overall, looking at the technical analysis landscape, it seems further drawbacks may be next for The Pound.

Around the markets, mixed performances were seen elsewhere as the Canadian Dollar fell to 1.2692, hitting a 2 year low. The Kiwi hit 0.721, highest rate in 2 years. USD/SGD fell to 1.32, hitting a 2 year low. A new 4 month high for the pound/yen at 141.31.

The market will keep its eye on the following upcoming macroeconomics indicators: United Kingdom CFTC GBP speculative net positions scheduled to come out today at 8:30 PM. The United States ISM Manufacturing PMI (Dec) expected to decline to 56.5, while its preceding data was 57.5, Data will be available today at 3:00 PM. United States CFTC Crude Oil speculative net positions are expected today at 8:30 PM. United States CFTC Gold speculative net positions are expected today at 8:30 PM.

The Pound social media highlights: