Is it me or is GBP/USD knocking on its weekly highs?
I’m checking out a possible breakout that would mean new May highs for the pound!
But first, check out the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Upcoming Potential Catalysts on the Economic Calendar:
- ECB President Lagarde to give a speech in Lisbon
- Canada’s retail sales at 12:30 pm GMT
- U.S. manufacturing and services PMIs at 1:45 pm GMT
- Eurozone’s consumer confidence at 2:00 pm GMT
- U.S. existing home sales at 2:00 pm GMT
What to Watch: GBP/USD
Cable is trading just above the 1.4200 major psychological handle that had held as resistance earlier this week.
Can the bears hold the level for another day?
Data printed earlier today showed the U.K.’s consumers AND businesses getting more confident in May as businesses reopen and the economy responds to a global economic recovery. The May GfK Consumer Confidence Index matched its March 2020 levels; the U.K. composite PMI hit its record highs in May, and retail sales soared by 9.2% in April.
Meanwhile, the Fed’s non-event earlier this week eased tapering concerns and gave market bulls the courage to buy high-yielding bets like the pound.
A clear break above 1.4200 could take Cable to the 1.4240 highs seen in February. Heck, it could even pop up to the 1.4330 highs that it made in April 2018!
If the bears manage to hold the 1.4200 zone, however, then you can also ride the bearish momentum all the way to the trend line support closer to the 100 and 200 SMAs.