Forex Trading: UK Has Mixed Data But GBP/USD Remains Supported

There was mixed data out in the UK today.  The GfK Consumer Confidence index stayed at -27 the same as April and the highest level in 11 months. Yesterday it was reported that Retailers sentiment rose to the highest level since 2007 according to the Confederation of British Industry.  Meanwhile Mortgage Approvals rose slightly to 43.4K from 43.2K but this was lower than the expected rise to 46.0K.  Banks continue to be cautious with their lending.

Despite the mixed data the GBPUSD was able to rebound in the London session.  The high for the day was recently reached at the 1.6576 level. The pair continues to have the resistance above the 1.6600 level that has kept the upside contained for the month.  Last week the high reached was 1.6600.  On June 11th the high reached was 1.6620, and on June 3rd the high reached was 1.6661.    The low since the June 11th has been contained by 1.6187 on June 11th.   Most of the lows have occurred between 1.6208 and 1.6227.  The month of June has been characterized by narrow ranges with up and down choppy action as the market figures out the next directional move for the pair.

Friday was characterized by the China desire to get out of the dollar.  It seems the worry is still out there which may keep the pair supported.  Commodities remain supported as does the stock markets.   There was a ceiling developed earlier today at the 1.6546 level which was broken.   Watch this level early on today.   Below that level is the 1.6519 level for the pair.  Friday the market closed at 1.6523.

The market is still comfortable with the narrow ranges.  It is a holiday week but a week that will have key economic data with Unemployment out of the US highlighting the economic releases on Thursday. In the UK the PMI Manufacturing for June will be released on the 1st of July.  PMI for Services and Construction will come out on the 2nd and 3rd respectively.

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