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Despite disappointing statistics from the UK, the Cable moved lower only in the beginning of the week, hitting 1.55 level on August 10. Moreover, in the middle of the week, the Pound eased lower again versus the Dollar, after data revealed that UK wage growth slowed in July, while the unemployment rate remained steady. According to the office for National Statistics, the average weekly earnings, excluding bonuses remained the same at an annualized 2.8% in the three months to June. The unemployment rate, in turn, remained unchanged at 5.6% in the three months to June, in line with forecasts. Meanwhile, the number of people claiming unemployment benefits declined by 4,900 to 792,400 in the preceding month. Nonetheless, on Friday, the pair was boosted after the release of upbeat US producer prices which were higher for a third straight month in July, while factory output increased 0.6% in July, showing the fastest rate in eight months.
Dukascopy Community members are mostly bullish on the pair, as more than 54% of respondents believe the pair will appreciate this week. The consensus forecast stands at 1.5612.
From the perspective of traders forecasts, "The GBP/USD the same of EUR/USD still unable to clearly break current weekly resistance around 1.5600-1.5700, next week the pair may consolidate again between 1.5500 and 1.5700 range." said khalidamassi.
Concerning the fundamental data, in the week ahead, investors will be awaiting the minutes of the Fed's July meeting for any indications on its plans to hike interest rates for the first time since 2006. On Thursday, the UK is to publish figures on retail sales, while the day later, the US will publish the preliminary data on manufacturing activity.
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