The pair is rising on Friday as it continues to bounce from 2-week lows. The UK services PMI rose in June above expectations (58.5 vs 57.4) giving some support for the pound in the market. Today not much movement in the currency market is expected considering that Wall Street will be closed. Price action should remain limited favoring a consolidation between 1.5655/60 and 1.5580; but a break could trigger further moves.
Cable is holding a slightly bullish bias in the short-term with technical indicators pointing also to the upside. The pair is moving toward the 4-hour 20-SMA that stands around 1.5650/60, area that is a static resistance level that could limit the upside. A break higher would open the way for more gains, targeting 1.5680. Above, attention would turn to a downtrend line that stands at the moment around 1.5715. A consolidation on top would set the scenario for a major recovery.
If the pair is unable to rise above 1.5650 a decline toward 1.5600 initially is likely and below there, toward 1.5580. A consolidation below 1.5580 would add bearish pressure to GBP/USD, exposing weekly lows that lie at 1.5560; under the mentioned level a slide to 1.5500/25 seems likely.
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