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GBPUSD analysis Wednesday 5th of July 2017

GBPUSD analysis Wednesday 5th of July 2017

 

Despite the American holiday yesterday in the Independence Day and statements by a member of the Bank of England's financial policy committee that British families should prepare to raise the British interest rate, the pair declined during yesterday's trading due to the continuing fears of the markets and due to concerns that Britain should undertake a round of tough negotiations that could harm the growth of the British economy.

The slowdown in growth in the British construction sector was one of the reasons for the pair's decline. The PMI recorded 54.8, lower than 55.0, which was lower than the previous reading of 56.0.

Today, the Purchasing Managers' Index (PMI) is out in the service sector with 53.6 versus 53.8.

Technically

The rise and stability above 1.2950 level might be supportive to the pair's rise towards 1.2985 level and if breaching this level the rally might extend towards 1.3030 and then 1.3100.

If the pair fails to breach the 1.2950 level, this might cause a fall towards 1.2900 level. If this level is breached, it may continue to fall towards the 50 SMA at 1.2873 followed by the support level of 1.2855.

 

 

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