GBP/USD: daily update
By Mark Jensen
GBP/USD managed to rise yesterday as US dollar weakened after the ECB Draghi’s remarks and slightly higher UK Core CPI reading. Today the pair’s once again testing resistance at $1.6550 (55-day MA), while supported by $1.6500. British economic calendar for today looks empty, so all eye at the US and the core durable goods due at 12:30 GMT (forecast: 0.3%; previous: 1.1%) and US flash services PMI at 13:45 GMT.
The pair’s at the bottom of the rising channel. At H4 GBP/USD is below the bearish Ichimoku Cloud and the MAs have crossed in the bearish manner. Pound’s still vulnerable for the decline to $1.6470, so selling’s possible up to $1.6580 with stop around $1.6620 (20-day MA). Advance beyond this level will improve the bulls’ sentiment ahead of the release of the UK GDP on Friday.
Chart. H4 GBP/USD