GBP/USD Has Limited Upside Scope
GBP/USD has no clear catalyst driving the price higher, except that there has been technical space to do so following last week's sharp sell off from the 1.4480 area and in the absence of fresh concerns about a Brexit, in a weak US dollar opening, Sterling has shined.
GBP/USD rallied from 1.4051 last week to meet supply at 1.4515 where the price dropped back to make a slightly higher low of 1.4055 and broke key technical resistance the 4hr chart at 1.4208 to go and score fresh highs in a reversal at 1.4281 so far. The move was supported by a lower greenback across the board after US data. We now look ahead to the nonfarm payrolls at the end of the week for the main events.
Technically, analysts at Scotiabank argue that strength signals are still aligned negatively for the GBP across a range of time frames. "Typically, this means limited scope for GBP gains and more pressure on downside supports in the near-term," adding, "We see key support at 1.4110 now and expect renewed push towards 1.4050 to develop below there."
(Market News Provided by FXstreet)