The UK GDP figures for the 2nd Qtr. falls for the third straight quarter thus placing the UK economy technically recession. The British economy has some serious economic problems attributed by some influence from its neighboring countries other than their own.
However, these numbers have prompted the GBPUSD to move lower currently at 1.5490 while this movement have cushioned its decline by the corrective move of the USDx lower to 83.55/60 basis point. Likewise, this would justify a weekly techncial selling divergence for the USDx from the high at 84.10 and would adjust the relative strength index lower for another attempt higher if and whenever the figures on the US GDP would be better than most would expect.The 83.05/10 basis point still proves to be the initial support price to watch relative to the closing price for the week and month of July. Whenever the prices closes lower and establishes a piercing formation or a spike; a correction lower would be speculated upon prior to the next leg higher.
Today's price action has provided the Euro and correlated EURGBP cross rate a relief and a recovery from their lows; at 1.2040 & 0.7760 respectively. A calculated risk position contrary to the trend, a counter-trend strategy applied have proven to be good for a short-term trade before the end of the week. Either way, a push in any direction would be well tolerated as it brings interest that a possible counter-trend can occur between both major pairs of the USD vs the Euro.
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