Forex News: European Manufacturing data was mostly positive yesterday and this fact combined with a slightly hawkish Draghi speech, took the pair above resistance once again, creating a bullish session.
Lately all moves are reversed and all gains or losses erased. This suggests indecision and shows that the pair is in range mode, so until either side commits to a strong move, we can expect more of this bouncing movement. The most recent momentum is bullish after the failed break of the 50 period Exponential Moving Average so we will likely see a touch of the resistance at 1.1840.
Today is day one of the Jackson Hole Economic Symposium, so volatility is likely to be affected. This meeting takes place annually and is attended by finance ministers, central bankers and other financial personalities from across the globe. The actual impact depends on the speeches of the attendants and today no major speeches are scheduled.
Yesterday the control belonged to the bears who managed to take the pair below 1.2815 but movement was slower, partly due to the lack of economic data releases.
The pair is trading below 1.2815 and seems headed towards 1.2770, which is an important support level. Once price reaches this barrier, we expect to see a retracement higher, mostly due to the oversold condition of the Relative Strength Index but also because key levels are rarely broken in the first try. Overall our bias is bearish but bullish pressure will increase at support.
At 8:30 am GMT the Second Estimate GDP is released, showing changes in the value of all goods and services produced by the British economy. It acts as the primary gauge of economic performance and higher numbers usually strengthen the Pound. Today’s forecasted change is 0.3%, same as previous.