UK Mortgage Approvals are expected to fall for the second consecutive month in June while Net Consumer Credit growth slows from the previous month over the same period.

UK Mortgage Approvals are expected to fall for the second consecutive month in June while Net Consumer Credit growth slows from the previous month over the same period. The figures will reinforce dovish comments from BOE policymakers delivered in testimony to the Parliament’s Treasury Committee, where governor Mervyn King downplayed the stronger-than-expected second quarter GDP result to stress lingering uncertainty about the recovery in general and inflation in particular, signaling monetary policy is firmly stuck in accommodative territory for the time being.

Trading Tactics

A clear uptrend could be an opportunity to Buy GBP/USD.

The buying point is at 1.5627; Pivot point highest level is the take profit at 1.5695;
Pivot point is the stop loss at 1.5590

The selling point is at 1.5570; Fibonacci 38.2% is the take profit at 1.5450;
Pivot point is the stop loss at 1.5650

Technical: Sterling forms a new high and may continue the minor uptrend. A move back higher could set up a test of 1.5695

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice MACD crosses the signal line upwards; Momentum and RSI (Relative Strength Index) are in an uptrend; stochastic oscillator gives a neutral signal.

*Analysis is for information purposes only and does not constitute advice in any form. Past performance is not an indicator of future performance. Trading in financial products carries a high degree of risk to your capital and it is possible to lose more than your initial investment.

GBP/USD (Hourly Chart)