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1 May 2013
Forex: GBP/USD finishes higher for a fifth straight day, closes April +2.31%
FXstreet.com (Barcelona) - The Sterling finished higher for a fifth straight day, closing up 42 pips at 1.5535. Economic data in the coming European session will be light with the only reports from the UK being Nationwide Housing Prices (6:00GMT) and Markit Manufacturing PMI (8:28 GMT).
According to Kathy Lien at BK Asset Management, “The British pound extended its gains against the U.S. dollar and it losses against the euro. The latest economic reports were mixed with consumer confidence declining and mortgage approvals rising. This divergence in data shows that while the housing market has held up well, the overall economy is still struggling.”
She went on to add, "The only reason why the GBP/USD is trading above 1.55 is because hotter GDP numbers led investors to believe that the economy has not weakened enough to warrant another round of easing. We'll get a much better assessment of whether that is true from the PMI manufacturing, construction and service sector reports scheduled for release over the next 3 days.”
The FXStreet.com Trend Index remains Slightly Bullish on the daily chart, while the OB/OS Index reads Overbought. Initial resistance sits at 1.5560 (the 100dma), followed by 1.5600 (upper channel resistance). First support is at 1.5510 (the 45dma on 1 hour chart), followed by 1.5475 (bullish hammer candles on 1 hour chart).
According to Kathy Lien at BK Asset Management, “The British pound extended its gains against the U.S. dollar and it losses against the euro. The latest economic reports were mixed with consumer confidence declining and mortgage approvals rising. This divergence in data shows that while the housing market has held up well, the overall economy is still struggling.”
She went on to add, "The only reason why the GBP/USD is trading above 1.55 is because hotter GDP numbers led investors to believe that the economy has not weakened enough to warrant another round of easing. We'll get a much better assessment of whether that is true from the PMI manufacturing, construction and service sector reports scheduled for release over the next 3 days.”
The FXStreet.com Trend Index remains Slightly Bullish on the daily chart, while the OB/OS Index reads Overbought. Initial resistance sits at 1.5560 (the 100dma), followed by 1.5600 (upper channel resistance). First support is at 1.5510 (the 45dma on 1 hour chart), followed by 1.5475 (bullish hammer candles on 1 hour chart).