GBP/USD remains in a bearish trend
Gary Christie June 24, 2020 5:04 PM
The GBP/USD pair remains in a bearish trend channel. Here are some key levels to watch.
On the economic data front, the Mortgage Bankers Association's Mortgage Applications fell 8.7% for the week ending June 19th, from +8.0% in the prior week.
On Thursday, Wholesale Inventories for the May preliminary reading are expected to rise 0.4% on month, from +0.3% in the April final reading. Durable Goods orders for the May preliminary reading are expected to spike 10.1% on month, from -17.7% in the April final reading. GDP for the first quarter third reading is expected to remain at -5.0% on quarter. Initial Jobless Claims for the week ending June 20th are expected to fall to 1,335K, from 1,508K in the week before. Finally, Continuing Claims for the week ending June 13th are expected to decline to 20,000K, from 20,544K in the previous week.
The Euro was bullish against most of its major pairs with the exception of the CHF and USD. In Europe, the IMF expects euro zone GDP to shrink 10.2% in 2020, or 2.7 percentage points lower than the previous forecast made in April. Separately, in Germany, the IFO business climate index came out at 86.2 in June, compared to 79.7 in May (revised from 79.5) and 85.0 expected. The Current Conditions sub-index came out at 81.3, compared to 78.9 in the previous month and 84.0 expected. The outlook sub-index stood at 91.4, compared to 80.5 a month earlier (revised from 80.1) and 87.0 expected. In France, the Business Climate Indicator for the manufacturing sector was 77 in June compared to 79 expected and 71 the previous month (revised from 70). For its part, the business climate index as a whole stood at 78 compared to 60 in May (revised from 59) and 72 expected.
The Australian dollar was bearish against most of its major pairs with the exception of the NZD.
Wednesday's largest currency pair mover was the GBP/USD which dropped 98 pips to 1.2419. The pair remains in a bearish trend channel. As long as the price can stay below 1.2465 look for a retest of support at the 1.234 low.
Source: GAIN Capital, TradingView
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