GBP/USD: Forseeing More Gains For The British Pound

The Cable continues its impressive run and is charging ahead Tuesday in much better than expected Mortgage Approvals, CPI and Relative Price Index.  Mortgage Approvals have outperformed analyst expectations for the 3^rd straight release.  Britain’s housing market seems to have found a bottom, reigniting hopes the worst of the economic crisis may be behind us.  Additionally, outperformance in the CPI and RPI indicate prices are stabilizing and rising.

The GBP/USD is running with all of the positive FX news, popping past February 23^rd highs with no foreseeable barriers left between present price and 2009 highs.  Therefore, we anticipate more near term gains for the Cable.  Meanwhile, our uptrend and downtrend lines are fading into the distance.  If the GBP/USD can manage to rise above February highs, then the currency pair could really take off.

However, the 2009 highs and the highly psychological 1.50 level will certainly be formidable foes to the upside.

Fundamentally, we maintain our resistance of 1.4781 and find fresh resistances hanging at 1.4809, 1.4848, and 1.4893.  The 1.45 area will serve as a psychological cushion with 1.50 acting as a highly psychological barrier.

To the downside, we see supports of 1.4704, 1.44671, 1.4619 and 1.4570.   The GBP/USD is currently exchanging at 1.4742.

Subscribe by RSS Subscribe by Email