Today, UK economic data is bad again:
- GDP (YoY)dropped to 2.7% vs 2.8% forecast.
- Total Business Investment fell to 2.4% vs 2.6% forecast.
Last week, UK CPI , Retail Sales and Unemployment rate were also bad too. There are too much economic data for UK, the main reason holding GBPUSD not to be is the M&A flow : The deal between Verizon and Vodafone. 24 billion of GBP have to prepare to pay for Vodafone shareholders before April 1 : +GBP and – USD. Thus, basically, the demand for GBP is very high, and this would benefit for the Cable, but everything is not simple, particular in the context forex market is more and more complicated.
Tomorrow, the key datum I focus is: Durable Goods Orders.
If Durable Goods Orders is positive, plus bad UK economic data: the GBPUSD hardly holds 1.66 level. The first target is 1.66 level :38.2% Fib retracement I show on the chart, second target is 50% Fib retracement at 1.6533
If Durable Goods Orders is negative: G/U would test 1.675 level.
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