GBP/USD: outlook for August 22-28
Hello dear traders! My name is Angela, this is FBS analytical portal FX Bazooka and you are watching the weekly outlook for the British Pound.
The British pound recovered on solid economic data released in the UK. A block of inflation figures showed that price growth accelerated in July, the number of unemployment claims declined and retail sales rose by 1.4% after declining by 0.9% in June. These statistics mean that for now British economy isn’t hit by Brexit as it was thought to be.
A close above 1.3070 will form a bullish engulfing pattern on the weekly chart. That would make possible recovery to 1.33. Note, however, that once investors get reminded about the divergence between the Bank of England and the Federal Reserve’s monetary policy, negative trend in GBP/USD will resume. Such a reminder may come from the Fed Chair Janet Yellen’s speech next week. Support is at 1.3040, 1.2970 and 1.2840.
As for the UK economic calendar, the nation will release second estimate of Q2 GDP and business investment data on Friday.