GBP/USD drifting higher for a 3rd session after rough 2 weeks; 1.5587 key hurdle

FXstreet.com (Barcelona) - After about seven sessions of relentless selling, the GBP/USD is now on its third session of modest gains. A close above 1.5587 is needed to give this rally legs.

GBP/USD traders looking to British PMI and US’s ISM data for guidance

GBP/USD bulls will have to get some help either from British Construction PMI or the US ISM Manufacturing Index Tuesday to take out what could be very substantial resistance at 1.5587. If neither of those data points has enough punch, traders can wait until later this week when the Bank of England makes their rate decision and issues their policy statement and/or for the US monthly employment report.

Technical outlook for GBP/USD

As noted above, technicians say the key level to monitor in the short-term for GBP/USD is 1.5587. A close above that level may lead to a test of the recent highs at 1.5717. Short-term support for the cross comes in at yesterday’s pivot of 1.5530 and is followed by Friday’s pivot of 1.5461.

Flash: Market over-reacting post RBA - NAB

Following the RBA statement, in which rates were held stable at 2.5%, according to Matthew Johnson, Interest Rate Strategist at UBS, "the market took it as a hawkish development."
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