Sterling steps further above $1.68

GBP/USD looks set to continue its move higher, as it consolidates above $1.68.

Essentially, I remain encouraged by the price action in GBP/USD. Last week saw a steady move back towards $1.68 and, with this now acting as a floor for the price, the next targets are the peaks seen in late 2009, around $1.6885 then $1.7040.

The cable has remained consistently out of overbought territory since the beginning of March, a positive sign for those expecting a continuation of the uptrend. The series of higher lows and higher highs is indicative of an upward move in its most classic form, with the currency pair remaining within the rising channel that has been a feature since mid-2013.

If we do see some weakness, the $1.68 region would be viewed as the first support level followed by $1.6750. The Bank of England minutes are not likely to disrupt this move higher in any real form, since the Monetary Policy Committee still seems content to sit and await developments.

Spot FX GBP/USD chart

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