Sterling chops higher
GBP/USD is trading marginally higher in pre-London open markets, continuing to chop higher in a tight consolidation pattern which sees a lower-band of consolidation at 1.5690 with topside resistance at 1.5741. This has been breached already on Monday, but has subsequently failed to post a close bar above said level. Positive CBI Industrial Trends Orders data, released on Monday at 11:00 GMT, will likely see a re-testing of the upper-bound of consolidation, which if broken will see a possible move higher to 1.5770.
Later during Monday’s trading session we will see the release of US industrial production figures, where market expectations anticipate a rebound to 0.7% from its previous level of -0.1% month-on-month.
With the last full week of trading upon us, as well as taking into consideration previous short-term weakness, it’s possible that year-long USD bulls are taking profits of the table heading into the years end.