GBP/USD has been trading sideways for the last 14 days, with no strong trend to incorporate. The U.K Manufacturing Production was reported this morning at -0.4%, lower than the expected +0.3%. Intraday bias remains on the upside, as long as the 1.6004 minor support line is not broken.
GBP/USD went on an upside run to the 1.6140 high this morning, but now is back to the 1.6000 level. Intraday bias remains on the downside, as long as the 1.6440 minor resistance line is not broken. On the upside, if the 1.6440 minor resistance line is broken it will change the bearish bias to bullish sentiment and target the 1.6545 major resistance line.
Freshly back from Australia, I am hardly surprised by the fresh wave of dollar weakness. Over the past few months we have talked extensively about why the dollar could continue to fall. As the EUR/USD cracks above 1.50 for the second time in 2 months and USD/JPY extends its losses below 90, there are many reasons why the overall trend in the dollar is still down.
On a day when secret meetings are making the headlines, one thing that is not a secret is that the U.S. dollar is weakening. Although the surprise rate hike by the Reserve Bank of Australia drove the greenback to fresh 13 month lows against the Australian dollar, the big story this morning is the surge in gold prices.