GBPUSD Poised for Declines Unless Greece Stays in Euro Zone01 July, 2015 by Aayush Jindal in Fundamental Analysis, GBPUSD, Market Analysis, Technical Analysis
- British Pound after surging higher declined, and looks set for more losses in the near term.
- UK Gross Domestic Product released by the National Statistics registered an increase of 0.4% in the first quarter of 2015, compared to the preceding quarter.
- UK Index of Services registered a gain of 0.5% whereas the forecast was 0.4%.
- UK Total Business Investment representing the total amount of capital expenditures made by private firm posted a rise of 2% in the first quarter of 2015, compared to the preceding quarter.
- In the US, the Consumer Confidence released by the Conference Board came in at 101.4 in June 2015, up from the last reading of 94.6 (revised).
Earlier today in the UK, there was an important event, as the Gross Domestic Product, which highlights the sum of goods and services produced within the economy less the value of goods and services was published by the National Statistics. The market was expecting a gain of 0.4% in the GDP in the first quarter of 2015, compared to the preceding quarter. The result was in line with the forecast, as the GDP grew by 0.4%. When we look at the year-over-year change, the UK GDP posted a rise of 2.9% in first quarter of 2015, compared with the forecast 2.5%.
The UK Index of Services, which calculates the monthly movements in gross value added for the service industries was on the higher side. It registered an increase of 0.5%, compared with the last rise of 0.4%.
UK Total Business Investment
The UK Total Business Investment was also above the forecast as it rose by 2% in the first quarter of 2015, compared to the preceding quarter. Overall, the data was better than forecast, and helped the GBPUSD pair to gain bids.
GBPUSD Technical Analysis
The GBPUSD pair managed to climb higher today, but there was a bearish trend line on the hourly chart that stalled the upside. Moreover, the 200 hourly simple moving average was also around the same area, which acted as a barrier for buyers.
There lies a risk of a move towards the last low of 1.5660. A break below the mentioned support area might take the pair towards 1.5600.