I wrap up what happen to GBPUSD last week.
- UK Unemployment Rate fell down to 7.1% near threshold 7.0%
- GBPUSD was reinforced from soaring up of EURUSD to set new high 1.666
- Dovish comments of Governor Carney.
The main points in Carney speech:
- He considers a wide range of options.
- He admitted 7% benchmark of Unemployment Rate quickly be hit.
- He warned risk still remain.
- He wanted to see recovery in productivity.
- He liked weak currency.
- Rate hike was not on the table now.
Base on his comments, traders should pay attention more on productivity indicators.
This week, there is only one piece of UK data : UK GDP. And I believe 90% UK GDP will accelerate, and this will support for GBP.
Moreover, GBPUSD is influenced by EURUSD because UK economy links to EZ economy. Thus, I cannot ignore EZ economic data. Please refer my EURUSD analysis:
Finally, I find two engines to LONG GBPUSD:
- Positive UK GDP.
- Positive EZ economic data.
Hence, I hit BUY position. Target : 1.6650
Stop Loss: 1.6350
160 pips from current price.
But I recommend traders should LONG GBPUSD after Monday and before UK GDP releases. Target at 1.657, stop loss at 1.6350.
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