Pound sentiment remains soft ahead of the Q2 preliminary GDP figures tomorrow
It's been very much one-way traffic for cable in overnight trading but as sellers ran into the bottom-side of the downwards trendline near 1.2850 price rebounded a little. The rebound closed in on the 1.2900 level but fell short as the 38.2 retracement level @ 1.2895 on the hourly chart held:
As I mentioned yesterday, when looking at any retracements/rebounds always look to the near-term charts. My preference is the hourly chart and as previously mentioned as well, Fib levels will come in handy to define and limit risk levels.
But as long as price continues to hold below the two key hourly moving averages then the near-term bias remains in favour of sellers still.
As price continues to stay supported by the downside channel of the wedge on the daily chart, we could be in for a bit of a retracement - the hourly chart also shows a double-bottom pattern. But as long as the bigger picture of lower highs and lower lows remains intact, nothing will really change for cable.
The next key item on the agenda this week for the pound will be tomorrow's Q2 preliminary GDP release. Expectation is for quarterly GDP to improve to +0.4% from the +0.2% in Q1. So, let's see if that will shake things up as we close out the week.
*We're having a bit of technical difficulties so I apologise for the inconvenience in providing updates for the session ahead. I'm hoping things will get resolved soon but there's no specific timeline I can provide for that. Apologies once again.
