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GBP/USD – Bullish engulfing candle to spur further advances?

FXstreet.com (Barcelona) - The Sterling finished the day sharply higher, again find a firm bid down near the 1.5000 level and climbing 94 pips to finish at 1.5126

According to Val Bednarik at FXStreet.com, The GBP/USD holds to its daily gains, stuck around 1.5130, strong Fibonacci level, 61.8% retracement of its latest daily run. The hourly chart shows a strong upward momentum coming from indicators after a limited correction, but as long as price does not shows a clear break above this area, the picture remains unclear. Pullbacks should found support around 1.5050/60 area, while only below this last the intraday bias will turn negative.

According to Kathy Lien at of BK Asset Management, “ According to the Confederation of British Industry, retail sales dropped the most in 16 months as their retail trade index sank from -1 to -11. Economists had actually hoped for an improvement but slowing demand for food and drink caused the index to drop for the sixth straight month. The latest deterioration is extremely worrisome as it suggests that spending continued to weaken, which if continued would weigh on second quarter GDP growth. The comments from MPC member Charles Bean suggest that he shares our concerns. He said exports have been disappointing and high debt levels act as a drag on growth. He also felt that monetary policy can be a backstop for stability which suggests that he supports additional easing”

Nikkei index below 14000

The Nikkei index today has posted fresh 3-week lows at 13879 in early Tokyo trade, last at 13913 for the lunch break, down -2.75% for the day, adding more than -13% since past Thursday's fresh 5.5-year highs shy of the 16k points mark.
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Will US GDP data be the catalyst to break EUR/USD out of ‘pennant’ pattern on daily chart?

The EUR/USD ended the day sharply higher, shaking off less than stellar economic data out of Germany with both CPI and Unemployment Change figures coming in below expectations to close up 88 pips at 1.2940. Expect volatility to be high again tomorrow, with a number of Confidence figures to be released out Europe, followed by GDP, Pending Home Sales, Jobless Claims, and the PCE Deflator out of the US.
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