GBP/USD struggles around 1.5600

FXstreet.com (Edinburgh) -The abrupt upside of the sterling seems to be losing vigour at the doorsteps of 1.5600 the figure on Thursday, with the GBP/USD easing to the area of 1.5580/85.

GBP/USD bullishness intact

The BoE minutes and employment data on Wednesday plus today’s better-than-expected results from July’s UK retail sales are adding buying pressure to the pair, advancing in five of the last six weeks from multi-year lows around 1.4810. “While sterling may push a little higher in the short term, further gains will heighten the risk that the BoE’s doves fight back in the coming weeks. The break above the 200 day sma is a bullish signal for cable. However, we would expect the 1.5600 area to provide decent psychological resistance”, noted Jane Foley, Senior Currency Strategist at Rabobank.

GBP/USD key levels

As of writing the pair is gaining 0.51% at 1.5580 and a breakout of 1.5597 (50% of 1.6380-1.4814) would aim for 1.5678 (high Jun.19) and then 1.5723 (high Jun.18). On the other hand, support levels align at 1.5504 (low Aug.15) ahead of 1.5446 (MA10d) and finally 1.5423 (low Aug.14).