Key Highlights
- The British Pound is in a major downtrend from the 1.3650 swing high against the US Dollar.
- There is a crucial descending channel forming with resistance near 1.3320 on the 4-hours chart of GBP/USD.
- UK’s British Retail Consortium (BRC) Shop Price Index in Sep 2017 decreased 0.1% (YoY).
- Today in the US, the ADP Employment Change figure will be released for Sep 2017, which is forecasted to register 130K, down from 237K.
GBPUSD Technical Analysis
The British Pound after an impressive run found a strong barrier near 1.3650 against the US Dollar. The GBP/USD pair declined below 1.3300, but remains well above a major support near 1.3160.
During the downside move, the pair broke the 100 simple moving averages (H4) (Red Color SMA) and the 23.6% Fib retracement level of the last wave from the 1.2852 low to 1.3657 high.
A crucial descending channel with resistance near 1.3320 on the 4-hours chart is acting as a downside move catalyst. At the moment, the pair is finding bids near 1.3220 and the 50% Fib retracement level of the last wave from the 1.2852 low to 1.3657 high.
On the downside, there is a major support at 1.3160. If the pair dips further, the mentioned 1.3160 support might act as a barrier for sellers in the near term.
UK’s British Retail Consortium (BRC) Shop Price Index
Today in the UK, the British Retail Consortium (BRC) Shop Price Index for Sep 2017 was released. The forecast was slated for a minor increase of 0.1% in the index compared with the same month a year ago.
The actual result was on the lower side, as there was a decline of 0.1% in the index (Sep 2017). However, it was up from the last decline of 0.3%.
Commenting on the report, the Chief Executive, British Retail Consortium, Helen Dickinson OBE, stated:
Overall shop price deflation reached an all-time low in September with prices now teetering on the edge of inflation. A number of factors have combined to drive a sharp jump in food price inflation to 2.2 per cent over the year to September.
The non-food index was down 1.5% in Sep 2017 (YoY) and the food index was up 2.2%.
Economic Releases to Watch Today
US Services PMI for Sep 2017 – Forecast 55.1, versus 55.1 previous.
US ISM Non-Manufacturing Index for Sep 2017 – Forecast 55.5, versus 55.3 previous.
US ADP Employment Change Sep 2017 – Forecast 130K, versus 237K previous.
