The Great Britain Pound rallied and gained strength in the early trading session of the week and later lost its gains to end the week lower. Thanks to a stronger than expected Preliminary GDP from the U.S economy which bolstered the green back. This is a strong indication that the Feds are close to hiking interest in 2015.
Weekly bias remains favorable for the bears as 21 and 55 EMA are freshly crossed towards the downside on the 4 hours charts signalling the strong down trend isn’t ready yet to be over, SSRC (stochastic), RSI and MACD are also showing signs of bearish momentum continuation.
Another sign am expecting more sell off i the pair is a rejection of price on the 21 EMA forming a hammer on the daily charts, with price also closing below the Exponential Moving Average, more decline is expected. A clear break of 1.55891 supports will bring further decline to 1.54200 psychological zones in the medium term picture.
Key economic news reports to be watched closely in the Great Britain and US economy this week are GBP Manufacturing PMI, Service PMI, Interest Rate Statement/ Asset Purchase Facility, U.S ISM Manufacturing PMI, ADP Non-Farm Employment Change, Non-Farm Employment Change and Unemployment Rate.