The GBP/USD has increased significantly in the last three days, but the upward momentum was paused by a very strong dynamic resistance, the rate has decreased today even if the US dollar index has slipped lower in the last hours. Note that the current retreat could be only temporary and the rate could jump higher again and could climb above the yesterday’s high from 1.3272 level, the perspective remains somehow bullish on the short term because the rate has started to make higher lows, the sentiment could change again if the rate will have enough energy to resume the rebound.
The Cable wasn’t inspired by the UK CBI Realized Sales, which has increased from -14 to 9 points, have come in better than the -5 points estimate, unfortunately the Cable has lost ground versus the other major currencies, maybe the short retreat is natural after the impressive bullish run, remains to see what will happen in the afternoon and how the rate will react after the United States economic data will be sent to the public, the greenback is waiting for a bullish spark to be able to climb higher on the short term.
The US is to release the Core Durable Goods Orders, which could increase by 0.4% in July, could increase sharply versus the 0.4% drop from June, while the DurableGoods Orders could increase by 3.4% in the last month, more versus the 3.9% drop from June. Moreover the Unemployment Claims may increase a little from 262K to 265K in the last week, I don’t think that the minor increase will harm the USD. The United States Flash Services PMI could climb from 51.4 to 51.9 points , signaling that the services sector continues the expansion.