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GBP/USD jumps to highs

FXstreet.com (London) - GBP/USD has jumped from 1.5200 to print 1.5261 on further bullish data releases for the pair.

GBP/USD has extended todays rally after the rerelease of poor US data. Both Housing Starts and Building Permits have printed negatively. Housing Starts (MoM) for June came as 0.836M vrs Consensus 0.960m and 0.928m previous, while Building Permits (MoM) for June printed 0.911m vrs 1.000m consensus and 0.985m previous. Coming up next we have Bernanke speaking at 2GMT ad the beige book tonight at 6GMT.

GBP/USD a mixed bag

The trading range looks to be among key support area at 1.4900/20 and key resistance at 1.5320/50. While Sterling is attracting bids, whether or not this is real money flows or simply retail and speculation is yet to be reviewed. However, technically, the pair is overbought and fundamentally the general trend is to the downside. Axel Rudolph, Senior Technical Analyst at Commerzbank alluded to the point that provided the pair do not run much higher than these levels, attention should revert to the 1.4854/32 support. “Above 1.5305 neutralises the immediate outlook for recovery to the 1.5530/1.5603 band, the 78.6% retracement and 200 day ma”.

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