GBP/USD Forecast: Bullish run to continue once above 1.2505
|GBP/USD Current price: 1.2479
- UK manufacturing output confirmed at expansion levels in June.
- Market players are choosing to ignore mounting Brexit tensions.
- GBP/USD poised to extend its advance according to intraday technical readings.
The British Pound advanced against its American rival for a second consecutive day, with the pair reaching a daily high of 1.2490. The advance was backed by the better market mood and upbeat IK data, as the Markit Manufacturing PMI rose to 50.1 in June from 40.7 in May, in line with the preliminary estimate. Things, however, are not doing so well in the Brexit front. German Chancellor Angela Merkel said that the European Union needs to be prepared for the possibility that they may not be able to reach an agreement with the United Kingdom.
In another front, BOE’s policymaker Jonathan Haske said that the Bank of England’s current stance of monetary policy is appropriate but, on balance, risks are to the downside. The UK won’t release macroeconomic data this Thursday.
GBP/USD short-term technical outlook
The GBP/USD pair is trading around 1.2480 as the day comes to an end, offering a positive short-term stance. In the 4-hour chart, the pair has extended its advance beyond a directionless 200 SMA, trading a few pips below a bearish 100 SMA, this last providing resistance at around 1.2505. Technical indicators have surged well into positive levels, partially losing their bullish strength but holding on to highs at the end of the day.
Support levels: 1.2450 1.2400 1.2360
Resistance levels: 1.2505 1.2560 1.2600
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