FXStreet (Edinburgh) - A bout of buying interest is now boosting the sterling, pushing the GBP/USD to print fresh intraday highs around 1.6570.
GBP/USD follows the risk trends
Calendar in the UK will be far from significant this week, with only the Gfk Consumer Confidence due tomorrow and house prices tracked by Nationwide on Friday. Price action will surely be driven by the US docket and the sustainability of the USD rally, although the risk aversion has eased somehow in the last sessions. “While the undertone for GBP appears to be negative, patchy downward momentum suggests limited downside risk for now. However, only a move above 1.6590 would indicate that a stronger recovery is underway. Otherwise, this pair is expected to continue to grind lower towards 1.6520”, noted Quek Ser Leang, Market Strategist at UOB Group.
GBP/USD key levels
The pair is now up 0.16% at 1.6567 with the next hurdle at 1.6599 (high Aug.25) ahead of 1.6602 (high Aug.21) and finally 1.6633 (10-d MA). On the flip side, a breakdown of 1.6540 (low Aug.26) would expose 1.6500 (psychological level) and then 1.6460 (low Mar.24).