The bunting and flags are all strung up around my office as we await the next instalment of the UK success story. We’re in a magical place and the rest of the world is trailing in our wake. Rule Britannia!
That’s how the politicians would like to describe the situation but those of us with something more than butterflies between our ears know that were a long way from being out of the woods just yet.
The market though is looking for a confirmation of the continuation in growth and is probably looking for a bit more than the 0.8% q/q figure expected. If we hit 1.0% then it will be the first time since November 2012. Anything above 0.8% and cable will fly but don’t get sucked in. A lot of the good news is priced in and a pop could hit some heavy selling on the way up.
Look to the big levels for the key to the price action. 1.6250/60 is the first target and won’t stand for much as we’re so close so a break there should be expected. Then it’s the August 2008 resistance line at 1.6317 and the Dec 2012 high at 1.6382.
GBP/USD weekly chart 25 10 2013
If the figure is on the button then we’ll probably stay put with maybe a little pop followed by some higher expectation selling.
