GBP/USD Breaks Through 1.46 Ahead of UK GDP
GBP/USD
has seen aggressive buying flows in early London, sending the exchange
rate from 1.4550 low in Asia, to now break the 1.46 area and set new
highs at 1.4620 ahead of the UK GDP Q1 preliminary report, due at 8.30 GMT.
Significant increase in Sterling futures' open interest
Preliminary
data from the CME Group shows that futures traders continue to add new
long-sided business in Sterling futures this week. The increase in open
interest on Tuesday April 26th was of nearly 5k new contracts, a day in
which a commanding bullish bar was printed breaking through the
important 1.45 level, suggesting the breakout has some commitment from
buyers for a potential continuation.
GBP/USD technicals
Haresh
Menghani, Analyst at FXStreet, provides his take on the pair, noting
that "a move back above 1.4600 round figure mark might continue to face
resistance at 38.2% Fibonacci retracement level near 1.4640 area,
closely followed by a hurdle at Feb. 2016 high level near 1.4675-80
area, also coinciding with the trend-channel resistance." Should the
pair return below 1.46, 1.4550 may come into focus, with Haresh adding
that "additional weakness below 1.4550 level is likely to be limited by
the ascending trend-channel support near 1.4480-75 area."
