Market sentiment shows signs of improvement today since early Asian
session, when Nikkei soared on a report saying PM Shinzo Abe is
considering a corporate tax cut as a way to offset the impact of a
planned two-stage increase in the sales tax. Local share markets stand
in green, and the UK data has been positive, although far from shocking:
inflation yearly basis slowed from a 14 months high of 2.9% past June
to a 2.8% rise in July, while house price index growth by 3.1%, up from a
2.9% increase in the 12 months to May 2013.
However, the GBP/USD trades near its daily low of 1.5430 after a spike up to 1.5480 after the news. Technically speaking, the 4 hours chart shows price developing below 20 SMA that lost the upward potential and turned flat, while indicators stand in negative territory, showing no actual strength at the time being. A price acceleration below mentioned low should lead to a quick slide towards 1.5390, 61.8% retracement of its latest daily fall; a break below this last will imply stronger selling interest, eyeing then 1.5340/50 price zone. Price needs to recover above 1.5485 to revert current bearish tone and advance up to 1.5530 price zone.
However, the GBP/USD trades near its daily low of 1.5430 after a spike up to 1.5480 after the news. Technically speaking, the 4 hours chart shows price developing below 20 SMA that lost the upward potential and turned flat, while indicators stand in negative territory, showing no actual strength at the time being. A price acceleration below mentioned low should lead to a quick slide towards 1.5390, 61.8% retracement of its latest daily fall; a break below this last will imply stronger selling interest, eyeing then 1.5340/50 price zone. Price needs to recover above 1.5485 to revert current bearish tone and advance up to 1.5530 price zone.
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