- The pair climbs higher within the descending channel eyeing resistances at 1.315, 1.3276 21-DMA.
- GBP/USD is ending the North American session +0.23% with a range of 1.3116-1.3207.
As we head into the US holidays, the pound is solid against the 200-1hr SMA at 1.3193 and just of day’s highs at 1.3207 with the DXY on the backfoot between the range of 94.5620-94.9780, -0.28% at 1.3192.
GBP/USD is ending the North American session +0.23% with a range of 1.3116-1.3207 with a hawkish BoE’s Saunders eyeing gradual hikes, adding that U.K. policymakers may need to hike rates faster:
“Investment has grown at a modest pace despite,”
– Saunders
From data, UK Construction PMI rose to 53.1 in Jun, bettering expectations of an unchanged report from May’s 52.5. “This was the strongest reading in the index since Nov last year (and follows yesterday’s stronger than expected Manufacturing PMI reading (54.4),” analysts at Scotiabank noted. Looking ahead, UK ministers will be meeting on Brexit this Friday which will be key., on what may become a “back me or sack me” meeting between PM May and her cabinet as they attempt to thrash out a workable Brexit policy, as analysts at Scotiabank explained.
Key US events coming up
On the dollar’s side, investors backed out of safeguards in the greenback as Chinese markets recover making for a better environment for the higher beats and commodities while investors square up into the US holiday. Thereafter, we have US Jun ADP private payrolls, Jun ISM non-manufacturing survey, June FOMC meeting minutes (Thu), US Jun employment report, and US tariffs on $34bn of Chinese imports taking effect (Fri) as major risk events.
GBP/USD levels
The 2018 lows have been well supported at 1.3050 as the pair climbs higher within the descending channel eyeing resistances at 1.315, 1.3276 21-DMA, 1.3315 Jun 22 high and the 1.3331 weekly cloud top. To the downside, the 1.3000’s are open below the 1.3040/50 levels, where the Nov 3 low is located. Deeper, eyes will turn to the 1.29 level. On the flipside, a much wider 1.3461 (50-D SMA)/80 comes before the convergence of the 200-D SMA and 1.3597/1.3600 convergence comes as the upside target.
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