By TraderVox.com
The first major event from UK is the BBA Mortgage Approvals data which will be released on Tuesday at 0830hrs. The indicator has not changed much over the last several releases but the market is expecting an increase this time round. At 1000hrs on Wednesday, the CBI Industrial Order Expectations report will be released. This indicator has been on the negative side in the past. It is expected to remain in the negative but with a slight improvement this month. Prior to this report, at 0830 hrs, the preliminary GDP reading will be released. The last two readings have posted a 0.2 percent decline consecutively and the market expects this trend to continue this month as the UK economy continues to contract. On Friday, the Nationwide HPI report is expected to be released. This is a significant housing inflation index which was weak in June, coming in at 0.6 percent. The market is expecting a rebound with an increase of 0.8 percent.
With these releases, the marketing is expecting the pair to remain bullish this week as it has shown some strength over the last week. This is due to concerns that are being raised over the US data which is disappointing to investors. If the UK data comes in within the market expectation we might see and increase in the strength of the pound.
Some of the technical levels to look out for include; from the top, the resistance line at 1.5805, which was last breach in May followed by the 1.5750 which remained strong last week. The next line is at 1.5648 which has been changing its roles in the past week as the cross breached on its way up and broke it when it declined to close the week at 1.5615. The support line at 1.5600 held strong last week; but it is weak going into the week. The other support line is at 1.5521 followed by 1.5415.
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