FXStreet (Bali) - According to Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank, technical analysis in GBP/USD suggests that further upside pressures are likely.
"Upside bias—Expected weekly range to fall within 1.6825 and 1.7100 (historical congestion to resistance)."
"GBP is proving itself resilient today, after the UK released a softer than expected inflation print, falling –0.1%m/m and rising just 1.5% on headline and 1.6%y/y on core; while both RPI and PPI were soft as well. Together this suggest that even as housing prices continue to rise (ONS house prices rose 9.9%y/y) inflationary pressures in the UK are softening, which provides some leeway for the BoE. The release of the central bank minutes (tomorrow at 4:30am EST) are likely to show an underlying MPC who is turning increasingly hawkish, putting GBP at risk for further upside risk."
"GBPUSD short‐term technicals: bullish—technical studies warn of upside pressure as spot touched a multi-year high yesterday of 1.7011. The RSI at just 65 leaves significant upside room before GBP reaches overbought levels. We are biased to be long GBP."