GBP/USD bull's eyes are on the 1.5550 zone

FXStreet (Guatemala) - GBP/USD is currently trading at 1.5336 with a high of 1.5340 and a low of 1.5173.

GBP/USD is consolidating the bid at the highs of the rally that commenced from 1.5173 landing point post supply at 1.5260 resistance. The pair is headed in to overbought territory with RSI (14) approaching 70 while it trades at the highest levels since the beginning of March. Dollar weakness is the theme as markets price out an early hike from the Fed as data continues to disappoint.

Today, the Consumer Confidence for April printed poorly at just 95.2 vs the consensus of 102.5 and the Richmond Manufacturing index fell below the consensus to -3. Tomorrow we await GDP Q1 ahead of the FOMC later in the week.

Technically, the pair has crossed over in to bullish territory and while holding above the recent break out point of the 1.5186 Fibonacci, there is scope for 1.5550/70 zone, being the February high and the 38.2% retracement of the move down from the July 2014 peak, as noted by Karen Jones, chief analyst at Commerzbank who suggested that this level would then hold the topside.

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