UK GDP came in as expected today. The news was a relief to GBPUSD after more dovish BOE Meeting Minutes and weaker Retail Sale on Wednesday and Thursday. The data release created a volatile period in the first hour after the report, but since then the price has rebounded and is trading by a cluster of technical levels as London traders exit for the weekend.

For the week,

  • The price closed last week at 1.6085.
  • The high reached 1.61829
  • The low reached 1.59916
  • The midpoint is at 1.6088
  • The 100 hour MA is at 1.6085

The current price is within 5 or so pips of the 100 hour MA, the close from last week the 50% of the weeks trading range. Right in the middle. If you look at the weekly chart, the 100 week MA is at 1.6093 . So that too is around the current level. It’s like kissing your sister in that respect but there is one more bullish signal. That comes from the weekly chart.

GBPUSD ending London week near the close from last week, the week midpoint and the 100 hour MA.

GBPUSD ending London week near the close from last week, the week midpoint and the 100 hour MA.

The low for the week fell below the 50% of the GBPUSD move up from the 2013 low to the 2014 high at the 1.6000. Although the price fell below the 1.6000 level, there were no closes below the level. The price of the GBPUSD has traded above and below these levels in the last 4 trading weeks.The fact the price just barely made it below might be a little more bullish bias. Buyers held that line.

Of course, the pair was only a 0.6% reading in GDP today from the pair ending the week on a more bearish technical bias, and next week the bulls will still have to prove that the price can sustain a rally, but for now and from what happened today, the action is more positive in what has been a “kiss your sister” type of week.

GBPUSD traded above and below the 50% and 200 week moving average for the 4th week in a row.

GBPUSD traded above and below the 50% and 200 week moving average for the 4th week in a row.