FX.co ★ Trading plan for August 24, 2017

Closer to noon, the second estimate of GDP growth in the UK for the second quarter is published. The data must coincide with the first estimate. However, this will once again confirm the fact of slowing economic growth from 2.0% to 1.7%. Nevertheless, since the slowdown is already taken into account by the market, so that the weakening of the pound will be limited.

In the afternoon, several noteworthy data in the United States will be released. The number of initial applications for unemployment benefits may increase from 232, 000 to 238, 000 , but the number of repeat ones -is seen to decrease from 1,953 thousand to 1, 950 thousand. The total number of applications should grow by 2, 000. But the volume of sales of housing in the secondary market can show an increase of 0.9%.

The euro/dollar currency pair, having reached once again the periodic value of 1,1830, formed a slowdown, giving the opportunity for the bears to return to the market again. It is possible to assume a gradual decline in the quotation to 1.1725 / 1.1710.

The pound/dollar currency pair, showing an active downward trend, has reached a range support level of 1.2770, where there is quite a serious oversold. Consider two probable scenarios. First, there will be a formation of a cluster within the level of 1.2770, thus preparing a platform for long positions, where the prospect lies at 1.2850 / 1.2900. Second: the bearish potential will not fall, and after a minor stoppage, the quotation will try to gain a foothold below the level of 1.2770, with the prospect of continuing its movement to 1.2700.