Forex Market: GBP/USD daily forecast

During yesterday’s trading session GBP/USD traded within the range of 1.6966-1.7053 and closed at 1.6990.

At 7:48 GMT today GBP/USD was losing 0.04% for the day to trade at 1.6979. The pair touched a daily low at 1.6977 at 7:20 GMT.

Fundamental view

United Kingdom

The advance reading of the British GDP probably rose to 3.1% in the second quarter compared to a year ago, from a final reading of 3.0% in the first quarter.

The Gross Domestic Product is an integral part of the UK public account and measures the total economic activity of the country. GDP is still referred to as one of the main “common indicators” for economic activity and presents economic growth in the last quarter. This is the first calculation of the indicator based on production data and is published three-and-a-half weeks after the end of the quarter. This is a preliminary value of the indicator and is presented as a percentage change compared to the corresponding quarter a year earlier.

The Office for National Statistics is scheduled to release an official report at 08:30 GMT. In case, the British GDP grew at a faster-than-expected pace, sterling’s demand will be heightened.

United States

Durable goods orders in the US probably rose 0.4% in June, following an unexpected 0.9% drop in the previous month that was lower than initially estimated.

Durable goods are new or second hand goods that usually last for a period of over 3 years. Wholesalers sell durable goods such as motor vehicles, furniture, construction materials, machinery and equipment (including household appliances), metals and minerals (except petroleum), sporting goods, toys and goods for leisure activities, renewable materials and spare parts.

Durable Goods Orders excluding Transport probably rose 0.5% in June, after being flat in the previous month, according to the median analysts’ estimate.

The US Census Bureau is scheduled to publish an official report at 12:30 GMT. In case, durable goods orders rose more than expected, the greenback’s demand will certainly be supported.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.7003. In case GBP/USD manages to breach the first resistance level at 1.7040, it will probably continue up to test 1.7090. In case the second key resistance is broken, the pair will probably attempt to advance to 1.7127.

If GBP/USD manages to breach the first key support at 1.6953, it will probably continue to slide and test 1.6916. With this second key support broken, the movement to the downside will probably continue to 1.6866.