GBP/USD conquers 1.5304 resistance – now targeting key level at 1.5432

FXstreet.com (Barcelona) - Recent GBP-bullish data combined with a consistent flow of DXY-bearish news has the GBP/USD breaking through short-term resistance and on the way to a showdown with key “correction resistance” at 1.5432.

GBP/USD has been on a roll thanks to better British data and sluggish US data

With mortgage application data due out from the British Bankers Association at 8:30am GMT and house price and manufacturing data in the US due out later on Tuesday, GBP/USD bulls are hoping for a continuation of the recent trends in British and American news. Almost every piece of news recently has been supportive of the GBP/USD cross.

GBP/USD overbought short-term

Technicians say that the GBP/USD is likely destined for a continued rally all the way up to 1.5435 before major resistance is tested. However, they note that the cross is short-term overbought and may be due for a pause in the upside momentum. Short-term resistance for GBP/USD comes in at the key “correction resistance” level of 1.5435. The next stop above that level would be all the way up at 1.5591. Short-term support for GBP/USD comes in at the previous resistance at 1.5304 followed by the 7/11 peak at 1.52211.

Japan upgrades its economic outlook for a 3rd straight month

Japan's government released its monthly economic report, highlighting that the economy continues to show signs of a self-sustaining recovery.
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