23 July 2015; GBP/USD
1 question: which economy will do better? UK or US.
Yesterday on 23 July 2015, BoE had decided not to raise interest rates yet, but has agreed that interest rate will rise (for the first time since the 2008 financial crisis). As a result, the pound went up against the USD at 1630hrs SGT.
But the gains was taken back after US reported better homes sales, a sign of better economic performance. Homes sales beat forecast at 5.40m to 5.49m.
Today, I am expecting the pound to gain first at news on UK retail sales. But because of US unemployment claims at 2030hrs SGT (which was expected to be lower, lower claims means better US economic performances) and as such will bring the pound down.
I will put a sell at 1.563 and take profit at 1.554. Support at 1.559 (1hr EMA 55, 100 and 200 - converging). Next support at 1.556 (daily EMA55) and at 1.550 (daily EMA 100 and 200).
A break above 1.57 is consider a reversal in the downward trend.
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