- The pound is unaffected by UK data.
- The dollar cuts losses throughout the market in the last hour.
- GBP / USD hits important resistance again.
The GBP / USD is rising against the dollar for the second day in a row and hit the highest level in a week at 1.3884, before losing strength. The advance continues to be driven by a weak dollar.
The advance extends after having gained support above the 20-day moving average that is passing through 1.3765. Now GBP / USD is testing the resistance band between 1.3880 and 1.3900. In case of exceeding and affirming above, the bullish bias would be reinforced.
The dollar is falling on all fronts, although in the last hour it cut losses. This decline is key to the current rally for GBP / USD. Another factor that is giving a boost to the pair is the EUR / GBP, which is down again and is close to Thursday’s lows below 0.8530.
UK data and US PPI.
On friday they met various UK economic reports that did not have a major impact on the pound. July GDP grew 0.1% below expectations of 0.6%; which would mark a stagnation of the economy after growing 1% in June. Industrial production in July advanced 1.2%, more than the 0.4% expected.
In the US, the wholesale inflation report will be published for July. It is expected that el Producer Price Index show a rise of 0.6%. The report of wholesale inventories will also be known. The president of the Cleveland Fed will speak on monetary policy.
Technical levels
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