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GBP Awaits UK GDP

by Ashraf Laidi
Oct 24, 2013 19:47

Both UK GDP and German IFO are due on Friday, both reports containing input of hard data and sentiment indicators of two economies on the rise. UK Q3 data (exp+0.8% q/q from +0.7% q/q) could show the strongest report in over 3 years. BoE's Carney's speech at the FT today made no mention of the economic data's confrontation of the central banks' yield-dragging endeavours . Yet, there's already chatter the BoE may adjust its forward guidance as a result of the rate of growth, which outpaced all BoE forecasts.  Can GBPUSD take on the $1.63 figure, or is it risking a double top before a violent decline? And if Friday's UK data did disappoint, would it make sense to reverse the long standing bullishness in cable 4 days ahead of the FOMC meeting? GBPUSD currently stands above its 200-WMA by the highest margin in over 5 years. Some say the fundamentals and technical are overstretched, But that's what many have said 2 weeks ago and 2 months ago.

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