GBP/USD: daily update
British pound rose versus the US dollar on Wednesday on the positive April retail sales data. Positive figures increase expectations that the Bank of England will move closer to hiking interest rates. What’s more, the BoE meeting minutes confirm that a part of the MPC now sees more arguments for a rate hike.
As a result of the GBP-positive news, the cable reached its highest level since May 9 - $1.6920. This mark acts as a resistance now: this is the May 1 peak. Short-term indicators show that the pair is little bit overbought, so some consolidation in the current area is expected.
Break above $1.6920 could open the way to the psychological $1.7000 resistance. However, we expect the pair to reverse to the downside from this round mark. Support for the pair lies at $1.6850/40, $1.6800 and at $1.6730.
Chart. H4 GBP/USD