Forex: Cable ticked up in consolidation phase

FXstreet.com (London) - GBP/USD, mostly unchanged the pair has ticked up all of 18 pips to 1.5544 in this mornings European session, as London traders returned with their bullish feet in the ground after encouraging Services PMI last week and other better than expected data in construction and manufacturing. All of which are sure to aid the MPC when making their decisions towards their asset purchases a little later on this week.

The BoE meeting is on Thursday, and while markets in London were closed yesterday, there was little activity in the pair and it should be considered, that after lasts weeks bout of manic market’s, traders will be consolidating positions for some time yet, as can be seen in the price action currently.

Should the bulls have a pop at sterling again, targeting the robust 1.5600, sell stops are said to be above 1.5620, slightly above the hardened 1.5606 50% fib line.

“Critical resistance at 1.5606, a closing break above this would be positive opening the way to 1.5689 and 1.5789. Support is at 1.5481 ahead of 1.5402”, commented G.Yu and G.Berry, Strategists at the Swiss lender UBS.

So, further resistance is seen topside at 1.5789, and that is a 61.8% with there being the psychological 200DMA at 1.5759.

As stated earlier by us from Barcelona, The May 3rd low 1.5505 would open up sell stops for 1.5480 (low May 3) and then 1.5467 (low Apr.30).