Community Forecasts for August 31-September 4: GBP/USD 1W Chart

Source: Dukascopy Bank SA
© Dukascopy Bank SA
Equity markets and oil prices used to have great influence on the currency market in course of the Aug 24-28 trading week. A stock rout of the previous Monday and oil prices below $38 per barrel pushed a number of currencies considerably upwards, while commodity-linked currencies and the US Dollar were among the main losers. Therefore, the Cable has initially advanced to trade around 1.58 by Tuesday morning. However, market volatility managed to reach the norm by the period's end, which pushed the value of the Greenback noticeably to the upside. All USD-crosses were particularly driven by important fundamental statistics from the world's biggest economy. A bunch of better-than-expected statistics included CB Consumer Confidence, durable goods orders and second-estimate GDP. Meanwhile, the latter surged 3.7% in the three months through June, outperforming all analysts' estimates. Following that, the confirmed UK Q2 GDP provided little driving force to the researched currency pair as it continued to lose value, thus closing below 1.5450 by Friday of the previous week.
The share of bullish votes has almost halved this week, compared to the previous five-day period. At the moment only 43% of them are going long on the Sterling, while the majority of Dukascopy traders expect to see GBP/USD lower by Sep 4. The average estimate is in turn placed precisely at the 1.5450 mark. khalidamassi is among those traders, who are short on the Pound this week. He thinks that "After another failure to break above weekly resistance around 1.57, pair fell towards 1.54 and is expected to continue falling to 1.50-1.52, before stabilizing. Strong weekly losses indicated clearly that bearish momentum still persists in the market." Among UK data to watch this week, PMI indicators for different sectors of the British economy are likely to have significant impact on the pair's development.

© Dukascopy Bank SA

Actual Topics

Subscribe to "Fundamental Analysis" feed

Subscribe
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.
To learn more about Dukascopy Bank Binary Options / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Dukascopy Bank CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Crypto Trading / CFD / Forex trading platform, SWFX and other trading related information,
please call us or make callback request.
To learn more about Business Introducer and other trading related information,
please call us or make callback request.
For further information regarding potential cooperation,
please call us or make callback request.