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Hugo in HTO Trading,

GBPUSD: Inside day near a daily support

Yesterday in the UK the BBA Mortgage Approvals fell more than expected pushing GBP down, but in the U.S the Durable Goods Orders in July and Consumer Confidence in August rose more than expected pulling USD up making an inside day for GBPUSD.

On today’s light economic agenda we have MBA Mortgage Applications from the U.S in August with the previous number at 1.40%. A Mortgage growth represents a healthy housing market that stimulates the overall US economy and seen as bullish for USD.

GBPUSD decline but hold previous day low. The signs of consolidation may show that the down trend is losing steam and ready to bounce to a daily resistance at 1.6654.

Expecting upward move to 1.6654 on a break above previous day high at 1.6595 (scenario 1) or a break below Sundays low at 1.6534 could push GBPUSD to this year low at 1.6464 (scenario 2).