GBP/USD (current price: 1.3325)
Cable has been relatively strong last week despite the rally in the Dollar, and the GBP bounced back substantially on Monday, as the USD got weaker. The Pound remains one of the most bullish major short-term, after the consolidation below the 1.3450 level. The British CB Leading Index came in unchanged, in line with the consensus estimate and the economic outlook looks mixed, but less negative than most analyst expected following the Brexit vote.
Our assessment: The pair might continue higher, if the FED decides to hold the interest rate steady next week, and the British economy continues to post positive surprises.
