GBP/USD remains in a bearish trend
Gary Christie June 24, 2020 10:04 PM
The GBP/USD pair remains in a bearish trend channel. Here are some key levels to watch.
On the economic data front, the Mortgage Bankers Association's Mortgage Applications fell 8.7% for the week ending June 19th, from +8.0% in the prior week.
On Thursday, Wholesale Inventories for the May preliminary reading are expected to rise 0.4% on month, from +0.3% in the April final reading. Durable Goods orders for the May preliminary reading are expected to spike 10.1% on month, from -17.7% in the April final reading. GDP for the first quarter third reading is expected to remain at -5.0% on quarter. Initial Jobless Claims for the week ending June 20th are expected to fall to 1,335K, from 1,508K in the week before. Finally, Continuing Claims for the week ending June 13th are expected to decline to 20,000K, from 20,544K in the previous week.
The Euro was bullish against most of its major pairs with the exception of the CHF and USD. In Europe, the IMF expects euro zone GDP to shrink 10.2% in 2020, or 2.7 percentage points lower than the previous forecast made in April. Separately, in Germany, the IFO business climate index came out at 86.2 in June, compared to 79.7 in May (revised from 79.5) and 85.0 expected. The Current Conditions sub-index came out at 81.3, compared to 78.9 in the previous month and 84.0 expected. The outlook sub-index stood at 91.4, compared to 80.5 a month earlier (revised from 80.1) and 87.0 expected. In France, the Business Climate Indicator for the manufacturing sector was 77 in June compared to 79 expected and 71 the previous month (revised from 70). For its part, the business climate index as a whole stood at 78 compared to 60 in May (revised from 59) and 72 expected.
The Australian dollar was bearish against most of its major pairs with the exception of the NZD.
Wednesday's largest currency pair mover was the GBP/USD which dropped 98 pips to 1.2419. The pair remains in a bearish trend channel. As long as the price can stay below 1.2465 look for a retest of support at the 1.234 low.
Source: GAIN Capital, TradingView
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.