GBP/USD: all you need to know
GBP/USD rose today from $1.6640 to the levels above $1.6680. The pair keeps consolidating in a 200-pip range around $1.6990 (23.6% Fibo of the advance from Feb. 5 to Feb. 17).
British Manufacturing expanded at a faster pace in February, with a gauge of job creation soaring to a 33-month high. UK mortgage approvals and house-price growth increased to the most since 2007. The Bank of England’s Chief Economist Spencer Dale said in an interview last week that the revival in the property market is good for the economy, while officials are alert to the risk of overheating. This week the BOE is expected to keep the interest rates unchanged on Thursday, although the prospects of rate hikes are getting closer. The construction PMI is due today at 09:30 GMT. The pair’s upside is limited by the negative risk sentiment. The near-term outlook is mixed.
Last week GBP/USD failed to revisit February highs above $1.6800. A break above $1.6770 is needed to revive bullishness. Today pound got support from the 100-period MA at H4. Resistance lies at $1.6730 and $1.6770, while support is at $1.6638, $1.6605 and $1.6585. Downside will likely prove limited.
Chart. H4 GBP/USD