The pound is showing strong in the market in the calm day, Monday, for most of the crossings. The pair GBP/USD started the week extending the positive momentum from Friday and after a retracement up to 1.2528 during the european session, bounced and climbed up to 1.2549, reaching the highest level since last Thursday.
The quote is maintained with a bullish tone and near the highs of the day. The first support is what you can locate on the moving average of 20 hours that this happening por1.2530/35, in the case of the consolidated below the price, the couple could lose time bullish. They will then continue to the area of 1.2515 and then 1.2490/95.
In the opposite direction, the immediate hurdle is seen around 1.2550 (area of highs of the day); to break that level, the climb could be extended to the maximum of the Thursday that is located at 1.2570/75; and, further, the gaze will go to 1.2600.
The dollar is maintained with a tone of weakness in the market, after the economic data from the united States Friday and despite the risk aversion. The routes range could continue today in the market taking into account that the majority of the bags is not operating (Wall Street will operate normal, but it is expected that a reduced volume) and that there is no data on economic impact from the U.S. (you will report on regional activity and the real estate index NAHB).
In the Uk, the report’s most important of the week will be Friday with the report of retail sales.