Good day men and ladies of forex! From my last post about the Cable or the GBPUSD pair back on July 2 (kindly see it here), the have continued to trek along an ascending channel. After it met some resistance at around 1.5200, it fell back only to bounce back again from the channel’s support. It eventually broke above 1.5200 and continued to race past 1.5400. Recently, it marked a new 2-month high at 1.5472. Though with the stochastics already turning south and a likely wall just at the nearby resistance of the channel, the pair could soften for awhile before moving up again. If it weakens, then its likely support would be somewhere around 1.5200. But when it bounces north, it could rise until it encounters some selling pressure at 1.5500.
The pound continued to pound the greenback as the latter continued to show some broad-based weakness against the majority of the other majors. Despite Google’s weak second quarter showing, the demand for the non-dollar currencies remained high. But today, its rise was a bit cut off in spite of the stellar numbers by General Electric, Citigroup and Bank of America.
for today, the pound could extend its rally against the USD if the University of Michigan Consumer sentiment index for July prints a better-than-expected score. The index is seen to have fallen to 74.2 from 76.0. Though given the recent string of rallies in the global markets, the investors sentiment could have picked up during the period. Watch out for the its release today at 1:55 om GMT.