GBP/USD extends upside, eyes on 1.6900

By FXstreet.com | Updated August 05, 2014 AAA

FXStreet (Edinburgh) - The sterling is extending its upbeat sentiment on Tuesday, lifting the GBP/USD to the upper band of the intraday range around 1.6880.

GBP/USD boosted by data

Spot is now challenging 3-day peaks near 1.6880 after the UK Services PMI surprised investors to the upside in July, climbing to 59.1 vs. June’s 57.7 and 57.9 forecasted. The GBP is thus extending its recent bounce off multi-week troughs near the 1.6800 critical support. Ahead in the week, UK industrial/manufacturing figures are due, prior to the NIESR report and the BoE MPC meeting on Thursday. “In the interim, the pair may run out of puff towards 1.6900 with risks we think still tilted 1.6800 if the broad dollar continues to scalp higher in G10 space”, observed Emmanuel Ng, FX Strategist at OCBC Bank.

GBP/USD levels to watch

As of writing the pair is up 0.04% at 1.6870 with the next resistance at 1.6906 (high Aug.1) followed by 1.6926 (high Jul.31) and then 1.6930 (10-d MA). On the flip side, a breakdown of 1.6813 (low Aug.4) would aim for 1.6812 (low Aug.1) and finally 1.6811 (76.4% of 1.6693-1.7192).

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