GBP / USD pair
Yesterday, the UK showed weak economic indicators for August and the US stock market lost more than 3 percent. Yet, the pound took advantage of the general weakening of the dollar while investors were assessing the criticality of the moment. The British GDP for August showed zero growth against expectations of 0.1%. The volume of production in the construction sector lost -0.7% against the forecast of -0.4%, although the actual industrial production increased by 0.2% with the expectation of 0.1%. However, the negative trade balance only increased to -11.2 billion pounds against the forecast of -10.9 billion and -10.4 billion pounds in July. Moreover, it was revised to diminish from -10.0 billion.
Today, the balance of house prices from RICS for September showed -2% against the forecast of + 2%. Meanwhile, the Bank of England Governor Mark Carney speaks on environmental topics in Bali.
Hence, the pound has reached a nested trend line in a large downward price channel. The signal line of the Marlin oscillator on the four-hour chart lay either in the lateral range or formed a wedge. Both of these formations warn about turning down. We accept such a scenario as the main one with a turn from 1.3240 to the target level 1.3027.
Nevertheless, pushing up the prices are possible The goal of such is the range of 1.3362-1.3410. In the case of a standard false breakdown in such situations, the range may not be reached. Today or later we are waiting for the price to turn down.
The material has been provided by InstaForex Company – www.instaforex.com