The GBP/USD pair has fallen down to 1.3381 early in the London session, as the Greenback regained some of its attractiveness during the Asian session. Yet, the hurdle of data scheduled for today has kept majors within limited ranges. Comments from BOJ's Governor Carney have helped the pair bounce, as he said that most of MPC members believe it would be appropriate to raise interest rates if the economy stays on track. Nevertheless, the pair has resumed its decline after the release of UK data, as the final readings of UK Q2 GDP have shown that the economy grew by 0.3% in the quarter, as expected, but the YoY reading was downgraded to 1.5% from 1.7%.
Money figures from the UK were mixed, as mortgage approvals decreased in August to 66.580K from the previous release of 68.452K, although net lending to individuals rose more than expected, up to £5.6B from the previous £4.8B.
Later today, attention will focus on the US personal income, spending figures and particularly the PCE price index - the Fed's favorite inflation measure - expected at 0.2% for August, up from previous 0.1%. A better-than-expected number should push the Greenback higher against all of its major rivals, as it would reinforce hopes for a rate hike in December.
The pair extended its daily decline by a couple of pips and trades near its daily low, technically bearish according to the 4-hour chart. Cable continues being capped by a bearish 20-SMA, whilst technical indicators gain downward strength still within the negative territory. The level of 1.3340, a major Fibonacci support and the weekly low, is the immediate support ahead of 1.3300, with a break below this last exposing 1.3250. To the upside, 1.3420 is the immediate resistance, ahead of 1.3460, the 38.2% retracement of the latest bullish run.
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