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GBP/USD tested $1.6340

Kira Iukhtenko, FX BAZOOKA

GBP/USD has extended the rally on Thursday amidst increasing risk appetite. Cable has hit $1.6340 today – it is the December 2012 high and a descending 4-year trend line. We also need to note that the pair has finally broken above a 2-month sideways range (prior resistance at $1.6260) and above the November bullish channel (prior resistance at $1.6280).

It is still unclear whether the pair will be able to fix above the $1.6340 resistance or not, but the bullish pressure remains strong. The next event for the pound today will be Governor Carney’s speech in the context of the Financial Stability Report due (10:30 GMT). The next resistance lies at $1.6350, $1.6380 and $1.6400, while support is seen at $1.6270/60 and $1.6150.

Analysts at Commerzbank expect a weekly close above $1.6370 to introduce scope for growth to $1.6684/1.6714. UBS strategists target for the coming weeks lies at $1.6600. 

Chart. H4 GBP/USD


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