GBP/USD (current price: 1.4353)
Cable got up to the 1.44 level as we expected, before today’s crucial economic data releases. The U.S. real estate market took a hit last months, as both Building Permits and Housing Starts posted a negative surprise yesterday. Bank of England Governor Carney spoke about the risks of Brexit, and reiterated that the central bank needs to keep an eye on the situation as it is a “part of its mandate”. The bank is unlikely to have a major say in the matter and the comment failed to weaken the rallying currency on the short-term.
Our assessment: GBP/USD reached the upper boundary of the short-term consolidation pattern that we have been monitoring, and odds now favor a pullback from the 1.44 level.
