GBP/USD outlook: Rally takes a breather under key Fibo resistance at 1.2425
Cable maintain bullish tone on Monday and hit three-week at 1.2425 in European trading but pulled back to 1.2380 zone after rally was capped by Fibo barrier at 1.2425 (61.8% of 1.2642/1.2074).
Weak dollar and UK’s manufacturing PMI in line with expectations (40.7) and well above previous month’s 32.6 figure, adds to positive tone. Bullish setup of daily 10;20;30;55 DMA’s and rising positive momentum, underpin the action, but rally may pause for consolidation before resuming.
GBP/USD could rise back to 1.2648 – CitiBank
Analysts at Citibank point out the British Pound is fundamentally cheap. They consider a return to normality may see the pound trade more constructively, pushing GBP/USD back to levels seen at the beginning of 2020.