We see on the chart there is a large divergence betwen price and main indicators. With price is lower lows and with indicator is higher highs. Theoretically, the result of this divergence is bullish for Cable.
I hope TA will not be wrong, but FA shows some signals for indecision.
Fundamental next week focus on BOE meeting on Wednesday ,Retail Sales on Thursday, and UK GDP on Friday, don't forget US CPI on Wednesday.
Last week, we saw UK CPI dropped to 1.5% from 1.9%. Inflation is going down shows that UK economy is losing momentum. Definitely, next BOE Meeting on Wednesday, they will keep neutral stance and the first rate hike is unknowable.Because of decline of CPI, I think UK Retail Sales is very difficult to maintain uptick. While I think UK GDP will not change and keep at 3.0%, so economic data seem less support for Cable next week.
Shift focus to USD, with sharp decline of Oil price, and the energy price fell agressively recent months absolutely would cause a pause for inflation. I think US CPI on Wednesday at least is unchanged even negative.
In short, to choose a trend for GBPUSD next week, I choose uptrend.
Pay attention on chart, you see the bearish trend line I show on the chart, any break the trend line will drag GBPUSD higher, and RSI indicator, RSI broke the trend line, RSI would move higher ?. Technical Analysis show positive for Cable. I hope it will support for Cable.
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I hope TA will not be wrong, but FA shows some signals for indecision.
Fundamental next week focus on BOE meeting on Wednesday ,Retail Sales on Thursday, and UK GDP on Friday, don't forget US CPI on Wednesday.
Last week, we saw UK CPI dropped to 1.5% from 1.9%. Inflation is going down shows that UK economy is losing momentum. Definitely, next BOE Meeting on Wednesday, they will keep neutral stance and the first rate hike is unknowable.Because of decline of CPI, I think UK Retail Sales is very difficult to maintain uptick. While I think UK GDP will not change and keep at 3.0%, so economic data seem less support for Cable next week.
Shift focus to USD, with sharp decline of Oil price, and the energy price fell agressively recent months absolutely would cause a pause for inflation. I think US CPI on Wednesday at least is unchanged even negative.
In short, to choose a trend for GBPUSD next week, I choose uptrend.
Pay attention on chart, you see the bearish trend line I show on the chart, any break the trend line will drag GBPUSD higher, and RSI indicator, RSI broke the trend line, RSI would move higher ?. Technical Analysis show positive for Cable. I hope it will support for Cable.
Please like my FB page to get FX signals and update Analysis: www.facebook.com/sforexsingals
And follow my Twitter: twitter.com/SforexSolution