The GBP/USD consolidates near a daily high of 1.6184, losing the early upward momentum amid weak UK data: public finances worsen over the last six months, with the government borrowing more than budgeted. News the ECB is purchasing covered bonds from Spain and Italy sent Euro nose diving, helping the greenback advance also against Pound.
Technically, indicators retrace from overbought levels, with some clear bearish divergences in the 4 hours momentum and RSI retracing from 70. 20 SMA in the mentioned time frame maintains a strong bullish slope, acting as dynamic support in the 1.6080 price zone. Immediate support comes at former resistance at 1.6125, and once below, mentioned 1.6080 comes next. A break above the daily high however, should lead to further intraday gains, eyeing then 1.6220/30 price zone.
View Live Chart for GBP/USD
Technically, indicators retrace from overbought levels, with some clear bearish divergences in the 4 hours momentum and RSI retracing from 70. 20 SMA in the mentioned time frame maintains a strong bullish slope, acting as dynamic support in the 1.6080 price zone. Immediate support comes at former resistance at 1.6125, and once below, mentioned 1.6080 comes next. A break above the daily high however, should lead to further intraday gains, eyeing then 1.6220/30 price zone.
View Live Chart for GBP/USD
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