Pound up, despite Weak Economic Data

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Pound up, despite Weak Economic Data
Pound up, despite Weak Economic Data

Pound up, despite Weak Economic Data

The British Pound remained steady and is continuing to follow its technical levels where it has gained in the London session today by nearly 40 points even though the economic indicators including its construction and manufacturing PMI did not meet up the expectations of the analysts.

The pair is currently trading above its today’s pivot point level at 1.6652 in the European session where short to medium term outlook is bullish and the pair could hit 1.6667 resistance level, breaking of which could lead it to test 1.6686.

However, it is recommended to not take huge positions on the pair today as we are left with another important fundamental of services PMI that would be released tomorrow. A poor outcome could bring the pair down where its trendline support is reaching up, breaking of which could handover the pair to bears.

Spanish Unemployment Falls

The Spanish unemployment claims fell last month where the increasing trend of entrepreneurship among youth seems to be working out for the economy; however, the Euro could gain much against the US Dollar today and is under pressure. The resistance levels are keeping it from gaining, where its current price level of 1.3792 is being taken as a top by the sellers.

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Short positions can be taken right now with tight stop losses, where chances are that the pair would fall if the US ADP-NON-farm employment change comes out to be in favor of the greenback. And yes, selling momentum would increase if the pair breaks its support level of 1.3775 and move down as it would target 1.3759 and 1.3744.

Gold

The metal has been under the SMA 100 lines of hourly and hour hourly charts for around two weeks, where the sellers are taking full advantage of it so far. Gold further dropped yesterday from 1286 down to 1277 and is currently trading at 1283 level.

Traders must keep a close eye on the technical levels as it would move only on the basis of technical levels till Friday’s big data of NFP and unemployment.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com