FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik observes that the lack of important fundamental data releases in the UK kept the pound in the background this week, as it didn't offer any price action surprises.
"But fundamentally, we learned that the UK economy is still probably the strongest with the data released pointing for a steady and sustainable growth."
"Technically, the fact that 1.6700 level against the greenback remained unbroken is supportive of a bullish recovery in the GBP/USD particularly after price also recovery above the 1.6800 figure where it holds. A final confirmation bulls are back in force would be a break above 1.6840 price zone, where a daily descendant trend line coming from this year high acts as immediate resistance. Once above, the rally may extend in the short term up to 1.6890, while if above this last, 1.6920 is next."
"On the other hand the key support stands at 1.6770 as only below it the pair may lose the upward tone clear in this 4 hours chart and ease back towards 1.6700/20 price zone."