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Although the data on orders for durable goods in the United States turned out to be better than forecasts, the pound was able to further strengthen its position. And this is all because the volume of orders has decreased anyway. It is not by 0.2%, but only by 0.1%. Nevertheless, this is still a decrease in the volume of orders, therefore, retail sales may still decrease. So, it is not surprising that the pound has grown a little more.
Durable Goods Orders (United States):
Today, the direction of the pound's movement may change sharply, under the pressure of data on applications for unemployment benefits. So, the number of initial requests should be reduced by 8 thousand, and repeated by 40 thousand. That is, we are talking about further improvement of the situation on the labor market. And this is exactly what the Federal Reserve System needs to start gradually curtailing the quantitative easing program. The very possibility of such a prospect will contribute to a noticeable weakening of the pound.
Repeated applications for unemployment benefits (United States):
The price stagnation in the range of 1.3700/1.3750 was broken through on an upward trajectory, as a result, I will prolong the correction course to new levels. The Fibonacci lines 50.0 - 1.3780 and 61.8 - 1.3825 remain on the path of buyers, relative to which the completion of the correction is considered.
The RSI indicator is moving around the value of 60, which is below the overbought level of 70.
The daily trading chart shows a descending cycle from the 1.4000 level. Market corrections are an integral part of the downward cycle.
Expectations and prospects:
In this situation, it can be assumed that the corrective movement is nearing completion. The resistance levels are 1.3780 or 1.3825, relative to which a recovery process will occur regarding the corrective course.
A comprehensive indicator analysis gives a buy signal in the short-term and intraday periods for prolongation of the correction. Technical instruments in the medium term signal a sale due to a downward cycle from the level of 1.4000.
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