By Fast Brokers
The Cable has just jumped out of our 2nd tier uptrend line and February highs, leaping over 2 of 3 significant obstacles before a sizable breakout can take place. The third key barrier is the highly psychological 1.50 level. Though the Cable is climbing past 1.50 as we speak, the area could prove to be challenging in the near-term, and shouldn’t go down without a fight. That being said, the GBP/USD is in the process of reconfirming its uptrend as it exercises its clear dominance over the Euro and Dollar. With a shortage of significant economic data surfacing from Britain this week, the Pound is flying high off of its encouraging data from the past month. Uncertainty is brewing in the EU and U.S., giving the Pound the upper hand for the near-term. Hence, the Cable is running without U.S. equities right now. However, should U.S. markets head higher, this would only add fuel to the fire of the Cable’s present rally. Whether and uptrend continues to materialize in the GBP/USD over the medium-term is another question. We could easily see mixed data come from Britain over the next few weeks, stoking uncertainty similar to that in the U.S. After all, Britain and the U.S. are so intertwined, it would be hard to believe that if the U.S. economy has another setback Britain’s wouldn’t follow suit. However, right now all is good in the GBP/USD with all indicators in the positive. Fundamentally, we find resistance of 1.5028 with additional resistances hanging at 1.5080, 1.5121, 1.5185 and 1.5219. The critical 1.50 could quickly turn into a psychological cushion with 1.55 becoming the psychological barrier. To the downside, we find supports of 1.4988, 1.4946, 1.4883, 1.4834 and 1.4770. The GBP/USD is currently exchanging at 1.5015.
Market Commentary provided by Fast Brokers.
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