GPB/USD---IS IT READY TO GO BELOW 1.5000 ??

Fundamentals on GBP

The Pound is mixed last week as lower than expected PPI figures are likely to allow the BOE to maintain accommodative monetary policy going forward.

– Inflationary pressures cooled off in August according to a producer price report released earlier, but the boost to the pound has long since evaporated. The cost of goods leaving the factory gate rose by a smaller than expected 4.7% on the year ago, while the cost of raw material inputs reversed course as the pound gained ground during the month. The pound has now lower at $1.5395 having reached $1.5467 in response to the earlier data.

As expected the Bank of England made no changes to policy at Last Thursday’s MPC meeting . Inflationary pressures cooled off in August according to a producer price report released earlier, but the boost to the pound has long since evaporated. The cost of goods leaving the factory gate rose by a smaller than expected 4.7% on the year ago, while the cost of raw material inputs reversed course as the pound gained ground during the month. 

TECHNICAL ANALYSIS

Daily Chart with Trendline

Daily Chart with Ichimoku

On the Daily Chart with Trend line, we note that the lower horizontal trend line is near the 1.5340(38.2% Fibo), both the RSI  and MACD indicate Bearishness near term, Breaching this lower trendline will retest the 1.5200 (23.8% Fibo) , and  1.4940 next(0.00 Fibo)

On the upside, breaching the upper trendline and 1.5600 (61.8% Fibo) will confirm its short term Bullish Reversal toward 1.6000.

On the Daily Chart with Ichimoku, Breaching below 1.5180 being the Ichimoku Cloud bottom support (also the 23.6% Fibo) will expose  1.4950 (0.00 % Fibo)

On the Upside, breaking above 1.5620,being  the Ichimoku Cloud top resistance, (also the 61.8% Fibo) will retest 1.6000 (0.00% Fibo)