The GBP/USD is in a consolidation state as it topped out at 1.71900 during last weeks trading session. Weekly bias remains on the downside as 21 Exponential Moving Average crosses the 55 Exponential Moving Average on the 4 hours time-frame. MACD, RSI, Stochastic, SSRC oscillators all show divergence on the 4 hours time-frame. More decline to 1.69512 supports is expected which happens to be on the 55 EMA on daily charts and also 50.0% Fibonacci level connecting 1.66977 supports (May 4, 2014) to 1.71900 resistance on the daily time frame. As long as 1.71900 resistance holds the pair remains on the downside. However, a clear break of 1.71900 resistance would trigger more rise in the pair to 1.73320.
Key economic indicators to watch out for in the Great Britain Pound economy in the coming week is the GBP MPC Asset Purchase Facility Votes/ MPC Official Bank Rate Votes, BOE Gov Carney Speaks, Retail Sales m/m. Elsewhere in the U.S economy we will taking close look at U.S Core Cpi, New Home Sales, Existing Home Sales and Core Durable Good Orders.