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Forex pairs in this Article » GBP/USD (Edinburgh) -The buying pressure is now shaping up around the sterling, pushing the GBP/USD to the vicinity of 1.6120.

GBP/USD in 2-day highs

The pair is now advancing for the second consecutive session, trimming the sharp losses from last Friday and posting fresh weekly highs at the same time. In the data front, The RICS house price survey hit a 10-year high in September, expanding 54% and confirming the solid path of the UK economic recovery and adding further strength to the pound. In light of the second stage of the Help to Buy scheme in the UK, Jane Foley, Strategist at Rabobank, assessed, “Insofar as the scheme is likely to support demand for housing, it seems likely that house prices will be pushed up… For sterling the initial support for growth is a positive factor. If, as in Canada, the rise in the household debt ratio brings forward the risk of a rate hike, there may also be medium-term support from this news”.

GBP/USD key levels

The pair is now up 0.07% at 1.6108 with the immediate resistance at 1.6119 (MA10d) followed by 1.6179 (high Oct.4) and then 1.6240 (high Oct.3). On the downside, a breach of 1.6015 (low Oct.7) would expose 1.6006 (low Oct.4) and then 1.5954 (low Sep.24).
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