The GBP/USD took a dip earlier yesterday after which it bounced back and gained nearly 90 points against the U.S. dollar, as the House Price Balance data came out to be much better than expected, hence indicating a lively activity in the housing market.
However, the pair failed to break above its critical resistance level at 1.6136 from where it bounced back yesterday and today as well in the Asian session. Currently, the GBP/USD is trading at 1.6065 after falling 50 points in the Asian session, and would try testing the support levels at 1.6033 and 1.6004 if it manages to break 1.6055.
The manufacturing production and trade balance data is set to be released today in the European session that could have a dynamic impact on the market where a better than expected outcome could result in lifting the pair up to 1.3107 and 1.6136 where sellers may start entering the market again.
Euro Looking for Breakout
Despite good economic data release such as the German trade balance on Tuesday, the pair couldn’t gain much. but instead fell in the U.S. session as the German factory orders contracted by 0.3% in the past month against the expected growth of 1.2%.
Currently the pair is trading at 1.3567 in the Asian session on Wednesday where it would find support at 1.3562 and 1.3550 area, breaking of which could allow the sellers to start entering the market and drag the euro down to 1.3534 and 1.3523.
The German industrial production data is to be released today in the European session, where a growth rate outcome of more than 1.1% expected figure could help the pair much as it would target to test 1.3598 and 1.3611 if it manages to break its pivot point at 1.3584.
Aussie Investors Waiting
Talking about the Australian dollar, it is still enjoying its movement in the short term bullish area where it is currently trading at 0.9429 where not much movement could be seen today in this pair, as the investors are eyeing on the employment change and unemployment rate of the Australian economy that is due tomorrow. However, buyers could feel safe to go long on the pair as long as it sustains above the critical support level of 0.9375.
To contact the reporter of this story: Jonathan Millet at email@example.com