GBP/USD Forecast: nearing 2017 high, bullish

Valeria Bednarik FXStreet

The Sterling Pound flirts with 1.3000 against the greenback this Thursday, extending the positive momentum triggered by BOE's Governor Carney, who said that the global recovery would make interest rate rise "necessary," moreover if wages surge. That was quite a change from his "not time to raise rates" from a couple of weeks ago, leading to an over 200 pips gain in the pair in a matter of hours. Having held on to gains, news released early London supported the Pound, as May money figures beat expectations. The number of mortgages approved in the month rose to 65,202, while net consumer lending rose by £1.732 billion, beating expectations and surpassing previous month's readings.

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From a technical point of view, the pair is extremely overbought, but while the price keeps advancing, indicators have lost upward strength, beginning to neutralize yesterday's sudden advance in the 4 hours chart. The 20 SMA in the mentioned chart maintains a strong upward slope after crossing above the 200 EMA, both far below the current level.

Beyond the 1.3000 threshold, the pair has a strong static resistance around 1.3040/50, where the pair met selling interest multiple times last May and the highest for this year. Beyond it, 1.3100 is the next possible bullish target for today. The immediate support comes at 1.2960, while below it, the pair can correct down to 1.2920 short term.

View live chart of the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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