1 Jul 2015
GBP/USD heavily bearish; smashed down to 2-week lows
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5600 with a high of 1.5736 and a low of 1.5587.
GBP/USD has been offered out of a sideways consolidation and collapsed on very positive US data, less so positive UK data and risk-off mode markets as we get set for a Greek referendum this weekend, all in all a poor day for Sterling, even through the cross with the single currency rallying from the off in Europe.
GBP/USD price action
GBP/USD collapsed at the start of the month in the Asian hand over form a sideways channel overnight between 1.5675 and 1.5716. Sterling dropped in Europe to 1.5645 and drifted south in London's open to until 1.5585 in the US to current levels.
GBP/USD fundamentals, from Greece, Carmey and to US Nonfarm Payrolls
Yesterday, Athens put forward a new proposal to the creditors of a 2-year bailout program that will not include the IMF. Today, a letter was leaked where Greece’s prime minister Alexis Tsipras supposedly accepted most Troika conditions. Meanwhile, Tsipras has already addressed the nation on live TV when he confirmed that Sunday’s referendum is still on. He continues to urge the people to vote ‘NO’. Meanwhile, Eurogroup President, Jeroen Dijsselbloem said that there is "little chance" that any progress will be made in the Greek negotiations after controversial comments from Prime Minister Tsipras during today’s' speech.
There has been a Eurogroup conference call that has ended just now and it has been said by an ECB official that there will no other meetings that are planned before this Sunday's referendum.
From the calendar, yesterday's UK GDP q/q came in line. Year on Year UK GDP printed better than expectations at 2.5% vs actual 2.9%. Today, UK's Markit Manufacturing PMI (Jun) was missing expectations at 52.5 vs actual 51.4 wobbling the pound. BoE's Carney sees lower risks stemming from high debt and lower inflation.
From the US, the ADP Employment Change (Jun) stood the US Nonfarm Payrolls in good stead this week, with results beating expectations of 218k vs 237k actual. ISM Manufacturing PMI (Jun) came in at 53.5 vs 53.1 and lifted the greenback also.
GBP/USD technically bearish
The price action is technically bearish with a rising weekly wedge forming on the longer term charts. Karen Jones, chief analyst at explained that a break of 1.5550 would need to be taken out in order to trigger major losses.
GBP/USD has been offered out of a sideways consolidation and collapsed on very positive US data, less so positive UK data and risk-off mode markets as we get set for a Greek referendum this weekend, all in all a poor day for Sterling, even through the cross with the single currency rallying from the off in Europe.
GBP/USD price action
GBP/USD collapsed at the start of the month in the Asian hand over form a sideways channel overnight between 1.5675 and 1.5716. Sterling dropped in Europe to 1.5645 and drifted south in London's open to until 1.5585 in the US to current levels.
GBP/USD fundamentals, from Greece, Carmey and to US Nonfarm Payrolls
Yesterday, Athens put forward a new proposal to the creditors of a 2-year bailout program that will not include the IMF. Today, a letter was leaked where Greece’s prime minister Alexis Tsipras supposedly accepted most Troika conditions. Meanwhile, Tsipras has already addressed the nation on live TV when he confirmed that Sunday’s referendum is still on. He continues to urge the people to vote ‘NO’. Meanwhile, Eurogroup President, Jeroen Dijsselbloem said that there is "little chance" that any progress will be made in the Greek negotiations after controversial comments from Prime Minister Tsipras during today’s' speech.
There has been a Eurogroup conference call that has ended just now and it has been said by an ECB official that there will no other meetings that are planned before this Sunday's referendum.
From the calendar, yesterday's UK GDP q/q came in line. Year on Year UK GDP printed better than expectations at 2.5% vs actual 2.9%. Today, UK's Markit Manufacturing PMI (Jun) was missing expectations at 52.5 vs actual 51.4 wobbling the pound. BoE's Carney sees lower risks stemming from high debt and lower inflation.
From the US, the ADP Employment Change (Jun) stood the US Nonfarm Payrolls in good stead this week, with results beating expectations of 218k vs 237k actual. ISM Manufacturing PMI (Jun) came in at 53.5 vs 53.1 and lifted the greenback also.
GBP/USD technically bearish
The price action is technically bearish with a rising weekly wedge forming on the longer term charts. Karen Jones, chief analyst at explained that a break of 1.5550 would need to be taken out in order to trigger major losses.