FXstreet.com (Córdoba) – GBP/USD bottomed today at 1.6430 reaching the lowest price of the current month. From there the pair started to recover and now is testing levels above 1.6475. Despite recent recovery Cable is 1.15% below today’s opening and is accumulating a decline of more than 500 pips since it reach a 9-month high at 1.7030 last week.
The FastBrokers Research Team affirms: “All is quiet on the data front until Britain releases its BRC Retail Sales Monitor and RICS House Price Balance numbers late Monday. A continual rise in housing prices could help solidify a temporary bottom in the Cable. Furthermore, investors will keep a close eye on key Chinese economic data. We could witness a broad-based Dollar depreciation if the Chinese numbers come in better than expected. China is helping pull the entire global economy out of the gutter, so outperformance in China could lift both the Pound and the Euro. Meanwhile, we’ll monitor the Cable’s correlation with the S&P futures since we witnessed a large appreciation of the Dollar on Friday despite stability in U.S. equities. Though we are not tossing the GBP/USD’s positive correlation with the S&P futures, we are certainly monitoring the situation closely.”
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