Friday, 19th July 2024

GBP/USD moves back to positive figures

Published:  4 Jun at 6 PM
The sterling moved back to trading in positive territory today, bouncing back from five consecutive negative weeks, with sentiment at present gaining some traction.

The sterling has taken a pounding during recent weeks, as the eurozone crisis was worsening because of Greek and Spanish woes, falling from highs of over 1.6300 to lows below 1.5300 seen on Friday.

The GBP has an interesting week ahead, with PMI services data being released and the Bank of England staging its monetary policy meeting. Although market consensus anticipates no changes taking place in the lending benchmark, opinions about the asset lending programme are divided, with pressure mounting recently due to the domestic indicators’ poor results and the crisis in the eurozone.

GBP/USD has now advanced by 0.05 to 1.5365, with the 1 June high of 1.5440 being the next hurdle ahead of the 30 March low of 1.5477, the 31 May high of 1.5526 and the MA10d of 1.5572, On the downside, a breach of the 1 June high of 1.5269 would bring the 13 January low of 1.5572, then 1.5190 and 1.5125.