GBPUSD Rebounds from Daily Lows, Stalls at 100 Hour MA
GBPUSD adds 0.27% at 1.2212 as traders trying to digest a set of macro date from UK and US today. United Kingdom Consumer Credit came in at £0.897B, below forecasts of £1B in July. The Mortgage Approvals came in at 67.306K topping expectations of 66.167K in July. The UK M4 Money Supply (month over month) increased to 0.7% in July from the previous 0.1%. UK Prime Minister Boris Johnson noted that EU less likely to give the UK a deal if they think Brexit can be stopped. On the other side of the Atlantic, the US Personal Income (month over month) registered at 0.1%, missing forecasts of 0.3% in July. The Personal Consumption Expenditures – Price Index (year over year) came in unchanged at 1.4% for July. The US Personal Spending came in at 0.6% topping expectations of 0.5% in July. United States Michigan Consumer Sentiment Index registered at 89.8, below forecasts of 92.1 in August. The Chicago Purchasing Managers’ Index came in at 50.4, topping expectations if 47.5 in August.
GBPUSD runs a strong rebound at the beginning of US session after the pair touched the daily low at 1.2157, and as of writing the pair managed to break above 1.22 and stopped at 1.2222 the 100 hour moving average. On the upside immediate resistance now stands at 1.2289 the high from August 28th, while more offers will emerge at 1.2360 the 50 hour moving average. Intraday traders can enter a long position if the pair breaks above 1.2222 daily high, targeting a break above 1.23, a stop order should be activated at 1.22. Short positions from here targeting 1.21 should place stop-loss orders at 1.2222. The recent sharp correction from recent highs cancels the recent positive bullish momentum for the pair and now only a move above 1.2289 can attract more bids. Traders must be very cautious with GBPUSD as the developments around Brexit will add to volatility.