GBP/USD Breaks Through 1.46 Ahead of UK GDP
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.
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."