The recovery in GBP/USD last weeks trading session implores that pull back from 1.5814 high has already completed at 1.5169 low already. And, with 1.5088 support intact, rise from 1.4565 is in favor to continue. Initial bias remains on the upside this week for 1.5814 resistance first as 21 and 55 EMA remains crossed to the upside with SSRC oscillator showing bullish momentum. Break will target 61.8% retracement of 1.7190 to 1.4565 at 1.6187. At this point, we’re slightly favoring that the rebound from 1.4565 is a correction. We’d expect strong resistance around 1.6187 to limit upside and bring reversal.
In the coming week, investors would be taking a close look at GBP CPI y/y, Average Earnings Index 3m/y, Claimant Count Change, MPC Official Bank Rate Votes, USD FOMC Economic Projections, FOMC Statement, Federal Funds Rate, FOMC Press Conference, CPI m/m and Core CPI m/m.