By Fast Brokers
Over the last 24 hours the Cable has made some of the most notable strides amongst the major Dollar pairs. The GBP/USD has bolted past the highly psychological 1.50 level and April highs in a single swing. Strength in the Cable comes after Britain hit another home run with its Construction PMI release. Hence, we have seen encouraging improvements in most all of Britain’s economy, giving investors little reason to hesitate in sending the GBP/USD higher since U.S. equities are on a roll. However, we haven’t seen a confirmation in volume on the Cable’s up-bars, meaning the currency pair could soon top out in the near-term as investors may hesitate with the S&P 900 while awaiting stress test Thursday. Despite our near-term hesitation, we maintain our bullish outlook trend wise. The GBP/USD continues to surpass key technical barriers and is leaving our downtrend lines behind, meaning the uptrend should have considerable room to grow.
Britain will release Nationwide Consumer Confidence later in today’s session followed by the Halifax HPI and Services PMI early Wednesday. Last week’s Nationwide HPI came in well above analyst expectations, so it will be interesting to see if tomorrow’s Halifax number relays the same message of stabilization in home prices. America’s Pending Home Sales blew by expectations yesterday, so a resounding message of recovery in housing builds a solid foundation for the uptrend to spring from.
Fundamentally, we find resistances of 1.5160, 1.5213, 1.5257, 1.5306, and 1.5349. To the downside, we see supports of 1.5059, 1.5017, 1.4988, 1.4946, and 1.4902. 1.50 becomes a key psychological cushion with 1.55 acting as a psychological barrier. The GBP/USD is currently exchanging at 1.5152.
Market Commentary provided by Fast Brokers.
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