GBPUSD at Potentially Significant Turning Point with RSI23 March, 2015 by Aayush Jindal in Market Analysis
- British pound tumbled this past week against the US dollar, as the latter one gained strength.
- Later, the GBPUSD pair managed to recover ground after finding buyers around 1.4600-40.
- Today, the CBI Industrial Trends Survey will be released by the Confederation of British Industry in the UK, which is expected to decline from 10 to 9.
The British pound as mentioned fell sharply this past week against the US dollar, and also created a new low. The GBPUSD pair traded as low as 1.4631 where buyers somehow managed to hold the downside. Later during the week, the pair climbed higher, but found resistance around an important bearish trend line on the daily chart.
The highlighted trend line acted as a barrier for the GBPUSD pair many times, and it might be again heading back towards the same. Currently, the pair is trading around the 38.2% fib retracement level of the last leg from the 1.5551 high to 1.4631 low. There is one critical aspect to note from the charts i.e. the fact that the daily RSI is heading towards the 50 level, which might act as a pivot for the pair in the near term. In short, the trend line resistance is aligned with the daily RSI reaching the 50 level.
UK CBI Industrial Trends Survey
Later during the London session, the UK CBI Industrial Trends Survey, which represents an expert qualitative opinion from senior manufacturing executives, on past and expected trends in output, exports and prices will be released by the Confederation of British Industry. The forecast is slated for a decline from 10 to 9 in March 2015, compared to the preceding month.
New Zealand Westpac Consumer Survey
Earlier during the Asian session, the New Zealand Westpac consumer survey, which measures the mood of consumers or business was released by Westpac New Zealand. The outcome was a bit on the higher side when compared to the preceding quarter. The New Zealand Westpac consumer survey index now stands at 117.4, up from 114.8 in the first quarter of 2015. The NZDUSD pair was seen surging higher this morning, as the pair climbed above the 0.7620 level and tested the 0.7660 area. Let us see how it trades in the coming sessions and whether it can challenge 0.7700 or not.