GBP/USD (current price: 1.4575)
Cable even exceeded our expectations yesterday as it hit 1.46 for the first time since January. The pound has been rallying for more than two weeks now, as Brexit fears continued to ease. Today’s GDP number could change the trend or, at least, cause a correction should it miss the consensus estimate of 0.4%. U.S. Durable Goods Orders posted a surprise of -0.2% and CB Consumer Confidence also came in worse than expected, putting some pressure on the Dollar in early trading. Economic data has been weak from both countries lately, so central bank policies and investor sentiment are the main short-term drivers for the pair.
Our assessment: GBP/USD is still likely to continue higher, barring a huge economic or monetary surprise today, with the resistance levels at 1.465 and 1.485 providing targets for the current rally.
