GBP/USD remains bullish with target 1.7100

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Guatemala) - Currently, GBP/USD is trading at 1.7013, up 0.00% on the day, having posted a daily high at 1.7051 and low at 1.7002.

While the dollar is on the back foot post the strong Chinese HSBC PMI's overnight, aiding the pound on its plight towards 1.71, we now await for what is likely to be the key event of the week for GBP/USD, being the inflation report coming up in the next 15 hours from now. Meanwhile, the 200 SMA for GBP/USD is currently at 1.7032, up from 1.6951 at the last period close, and climbing on the hourly GBP/USD chart. Kit Juckes, Global Head of Currency Strategy at Societe Generale explained, "With MPC members showing growing enthusiasm for higher rates despite the soft UK inflation data and with the front end of the UK rate curve likely to see a pick-up in hedging of mortgage risk among other things, I can't see GBP's advance stopping yet, despite the UK PM's marginalisation in Europe.

Further bullish outlooks for GBP/USD

Quek Ser Leang, Market Strategist at UOB Group also gave a short term bullish outlook and explained that, "Despite overbought conditions, there is no confirmation of a top just yet. Expect further GBP strength towards 1.7100 in the coming week. Only an unexpected move below the strong support at 1.6920 will indicate that an interim top is in place”.

GBP/USD Levels

Spot is presently trading at 1.7014, and next resistance can be seen at 1.7017 (Daily Open), 1.7021 (Hourly 20 EMA), 1.7026 (Daily Classic PP), 1.7040 (Monthly High) and 1.7040 (Weekly High). Support below can be found at 1.7003 (Hourly 100 SMA), (Yesterday's Low), 1.7002 (Daily Low), 1.6999 (Weekly Classic PP) and 1.6989 (Daily Classic S1).

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