The GBP/USD dropped further and should reach new lows in the upcoming days if the USDX will reach new highs. The pair is still located in the buyer’s territory because is located above a very strong dynamic support.
Technically, it is somehow expected to drop further after the failure to reach and retest a dynamic resistance and after the a false breakout above an upside obstacle.
The Cable could drop much deeper versus the greenback if the US data will come in line with expectations later. The UK’s high impact data have disappointed earlier, the Second Estimate GDP rose by 0.4%, less versus the 0.5% estimate and versus the 0.5% growth in the former reading period, while the Prelim Business Investment increased by 0.0%, less versus the 0.5% estimate and versus the 0.5% growth in the former. Moreover the Index of Services increased by 0.6%, more versus the 0.4% estimate and versus the 0.4% growth in the former reading period, but the CBI Realized Sales was reported at 8 points, even if the specialists have expected to and increase from 12 to 13 points.
The US Unemployment Claims are expected to remain steady at 230K in the previous week, another drop will boost the USD, while a major increase will ruin the it. The CB Leading Index willl be released as well and is expected to increase by 0.7%, more versus the 0.6% in the former reading period.
You should focus on the USD/CAD as well, Canada will release the Core Retail Sales, which is expected to increase by 0.1%, less versus the 1.6% in the former reading period, the Retail Sales could increase by 0.0% versus a 0.2% growth in the former reading period, the Corporate Profits will be released as well.
The New Zealand is to release the retail sales data for the Q4, the indicators are expected to increase and could help the Kiwi to recover a little.