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GBP/USD extends gains

GBP/USD is trading at daily highs of $1.5680 (highest levels since February). Market sentiment towards sterling is clearly positive. UK released upbeat figures today: May claimant count fell by 8.6K (forecast: -6.8K, April: -11.8K). Unemployment rate holds at 7.8%. MPC member Fisher said today the British economy is looking much better in Q2, but that growth will remain slow for a long time.

Market looks strongly bullish today. Break above the $1.5685 level would be a strong buying signal, but note that the big $1.5700 figure can also offer some resistance. Rise above this level would open the way for a medium-term growth to $1.6000. Next resistance will be seen at $1.5760 (61.8% Fibonacci, bottom of the weekly Ichimoku). We will remain clearly bullish on the pair as long as the $1.5500 level holds.

Resistance: $1.5700, $1.5760, $1.5870, $1.6000

Support: $1.5600, $1.5585, $1.5550 (200-day EMA), $1.5500

Chart. H4 GBP/USD

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