GBP/USD above $1.50
The pound has enjoyed a good run due to the pullback in the dollar, but sterling can’t depend on a soft greenback forever. GBP/USD is at its highest level in one month and the beige book update from the US has been the driving force behind it. To add to the pound’s rally was the drop in the UK unemployment rate which came in at 5.6% in February, and that compared to January’s figures of 5.7%.
GBP/USD has been in an upward trend this week and now that it has crossed the $1.50 it will be the acid test for strength of its rally. The pound is over bought on an hourly basis, and that could signal a pullback.
The $1.50 level has proved to be a difficult mark for sterling to hold above, and even though it has been tested several times in the past month, it has always quickly retreated. $1.50 is acting as support and while it holds the resistance at $1.51 will be the target, and beyond that traders will look to $1.52. A drop below $.150 will being the support at $1.4970 into play, and if that mark is punctured then $1.49 will be insight.