[AndrewWoo]

GBP/USD – Short term, momentum remains with the GBP. Cable is putting more distance between itself and the 200-day MA (now important, but relatively distant support at 1.5407) and has moved rather easily through the initial 38.2 % Fibonacci retracement resistance at 1.6041 (close above it for the first time today in all likelihood). This leaves the door fairly wide open for the push up to the low 1.63 area at least (range extension target from the 1.36/1.49 sideways range trade earlier in the year), if not higher towards the 50% retracement resistance at 1.6826. The bias is bullish here but the GBP has under performed on some
crosses this week, which may lead to a somewhat less dynamic tone against a still weak USD. Buy dips.