GBP/USD: is there room for more growth?
The cable extended its longest rally since the year 2012 last week, testing the levels above 1.5800. The pair remains supported by the post-election UK optimism and the USD weakness. The 1.5800 mark is an important level, but there is room for more growth in the near term. Watch the 1.5900 mark – this is the 200-week MA and 50% Fibo from the 2014 decline.
As for the economic calendar, we will be watching the UK April CPI on Tuesday. Consumer prices were flat in March. Many economists expect the economy to have slipped into deflation in April. You should also pay attention to the BOE meeting minutes on Wednesday and retail sales on Thursday.