GBP/USD Pivots at November Low, Faces Trendline from July High
- Better than expected UK economic data helps buoy GBP.
- EURGBP's false break higher may see retest of 0.7900.
- See the 'high' importance events on the DailyFX Economic Calendar.
Although today's UK data dump was nothing spectacular, it did offer a point of relief for the battered British Pound, after what has been weeks of disappointing economic data. The Citi Economic Surprise Index for the UK, a gauge of economic data momentum, was at -26.0 ahead of today's releases; by comparison, the CESI EUR was -21.5 and the CESI USD was +6.1.
All things considered, what we may be seeing in the GBP-crosses today is a 'sigh of relief' rather than the markings of a major bottom, although it is worth noting that on a technical basis, the hold of the November lows warrants consideration for a test of recent swing highs.
Concurrently, a test of the rest highs aligns with the descending trendline from the July, September, and late-November swing highs - technical pressure is starting to build for a breakout.
See the above video for technical considerations in GBPUSD, EURGBP, and EURUSD.
--- Written by Christopher Vecchio, Currency Strategist
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