GBP/USD: Further upside potential above 1.613
After recapturing the 1.600 level, GBP/USD is forming a second shooting star in a row on the daily chart this morning. The bulls are targeting November’s highs at 1.617 but it looks like the 1.61 level offers strong resistance at the moment, with attempts to break above that area likely to be met with resistance as the fundamental picture for the sterling continues to be discouraging with the nation’s rating review among the most imminent threats. The market remains well supported by an uptrend line for about a week now and as long as the support base at 1.608 remains intact there is no reason for the bulls to worry, with any pullbacks towards that area likely to be a good buying opportunity. Onto the main topics of today, the BoE announcement is expected with all eyes on potentially new stimulus measures. Later today, the focus shifts to the other side of the Atlantic with the US Jobless Claims due for release at 1.30 pm (GMT).
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