GBP/USD focus shifts higher towards 1.5600 – Scotiabank

FXStreet (Barcelona) - Eric Theoret, CFA, CMT, Currency Strategist at Scotiabank, notes that GBP has rallied higher on the back of the EUR, ignoring domestic data releases, with the focus now on 1.5600 levels.

Key Quotes

“GBP is strong, up 1.0% and rising in sympathy with EUR as market participants consider the passing of near term risk centered on Greece. The swift rally has pushed GBP back to a three-session high, its knee-jerk rally providing for a notable shift in technicals with a moderation in bearish momentum indicators.”

“Data releases have been overshadowed by the broader tone, as market participants have ignored unexpectedly weak construction output and mixed trade figures.”

“GBP has broken above its 50 day MA (1.5529), shifting the focus to further gains toward the July 7 open near 1.5600.”

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