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Forex: GBP/USD - Another day of gains, but unable to take out 1.5600 resistance

FXstreet.com (Barcelona) - The GBP/USD finished higher for a sixth straight day, closing up 18 pips at 1.5554. At one point during the day, the pair did trade as high as 1.5993, but was unable to take out the upper channel resistance at 1.5600. The UK will release its latest Construction PMI figure (48.00 forecast) in the upcoming European session at 8:30GMT.

According to Kathy Lien of BK Asset Management, “The British pound traded higher against the U.S. dollar for the sixth consecutive trading day. Despite all of the concerns about the outlook for the U.K. economy, data continues to surprise to the upside, quieting the talk of more stimulus from the central bank."

She went on to add, "This week's PMI reports are expected to provide the market with a better read on whether the growth enjoyed in the first quarter extended into the second quarter. Based on the rise in the PMI manufacturing index, there's hope for the U.K. economy after all.”

From a technical perspective, the recent move has been impressive and could still have room to go. Short term moving averages remain bullish, with price above both the 9 and 20dma’s. The RSI (14) is also bullish on the daily chart, sitting at 66 (in the 40-80 bullish zone), with no bearish divergences between price and momentum present. Initial resistance sits at 1.5600 (upper channel trend line), while first support sits at 1.5554 (previous day’s low).

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