Thursday, July 26, 2018

GBP/USD - 26 July 2018


Fundamental Highlights

The Pound breaks above 1.31622 as the U.K's Gross Mortgage Approvals figure beat expectations and U.S New Home Sales disappointed. U.K's Gross Mortgage approvals printed at 40.5K relative to the expected 39.0K and last month's 39.2K. On the other hand, U.S New Home Sales printed at 631k relative to the expected 669k while also dropping 5.3% on a month to month basis.

In regards to the Pound specifically, investors need to keep a look out on politics related to Brexit since any development on this front will be the major driver of the pair. For today, economic data releases from the U.S will affect the pair the same way they did yesterday.

Technical Analysis

The Sterling breaks above the 1.31622 resistance level and could rise towards the next resistance level at 1.32159. A break above the new resistance level will pave the way for a rise towards the 1.618 Fibonacci extension at 1.32846.

Support: 1.31622 1.30507
Resistance: 1.32159 1.32846

Chart (H4)