GBP/USD: daily update
GBP/USD almost reached $1.5700 yesterday ($1.5695), but then closed lower, at $1.5664. As for the economic data released in Britain today, the public net borrowing wasn’t as low as analysts hoped, but CBI industrial orders in August came significantly better than expected. Pound is approaching $1.5700 on the news. All eyes are now at US housing data at 14:00 GMT and the FOMC minutes at 18:00 GMT.
Credit Agricole recommends going long on GBP. Commerzbank says that that GBP/USD is still expected to hit the uptrend channel resistance line at $1.5739, a rise above which will open the way to $1.5750 (200-week MA). In their view, the outlook for GBP will remain positive above last week’s minimum of $1.5420.
Note, however, that pound is overbought and there’s divergence on H1 and H4 MACD. In addition, GBP is trading at the upper border of a rising channel since July, so a correcting in the pair seems quite likely. Support is at $1.5630, $1.5607, $1.5575 and $1.5515 (200-day MA).
Chart. H4 GBP/USD