GBP/USD: all eyes on $1.5750
GBP/USD reached today a 2-month high at $1.5673. This week watch UK economic data on Wednesday (public sector net borrowing, CBI industrial order expectations) and Friday (second GDP estimate for Q2, BBA mortgage approvals, preliminary business investment).
Commerzbank says that GBP/USD is about to touch the uptrend channel resistance line at $1.5707. A rise above this level will open the way to resistance at $1.5750 (200-week MA). The outlook will be positive for sterling as long as it trades above $1.5421 (last week’s minimum). UBS shares this view adding support at $1.5496.
SEB Bank has been viewing sterling’s advance from July as correctional, although the specialists admit that British currency has managed to rise much higher than they initially expected. In their view, the move up from August low looks like a “wedge” and is thought to stall somewhere near the June high at $1.5751. A session close outside the wedge ($1.5547/17) would be the first sign of weakness.
Chart. Daily GBP/USD