Potential for further GBP strength near term – Danske Bank

FXStreet (Edinburgh) - In the opinion of Anders Fischer, Analyst at Danske Bank, the sterling would remain strongin the near term.

Key Quotes

“GBP gained support yesterday and EUR/GBP dropped back below the 0.80 level, while GBP/USD increased and broke above the technical resistance level at 1.7136, as UK manufacturing PMI unexpectedly rose to the highest level in seven months”.

“Still, UK economic data perform relative to both US and European data and in the near term we still see potential for a stronger GBP against EUR and USD”.

“Today’s release of UK construction PMI has the potential to trigger a test of the very strong technical resistance level in GBP/USD at 1.7203”.