A flashing spike characterized today’s opening session with the GBP/USD brought, even for a small time, to the 1.3060 level, and coming down a few moments later, trading at +0.02% at 1.3022 at the time of writing.
The almost complete erosion of this initial gain is a consequence of the correlation to the Oil price action, particularly keeping in mind the OPEC news, for which they reached an agreement on the price of the commodity. At the same time the US Dollar is moving generally up on the back of improved durable goods data (0% against -1.5% expected) and the Yellen’s speech, which led to the Cable weakness.
Today’s session will be characterized by the release of a big number of important data to keep an eye on, first of all the German’s labour market, the English Consumer credit and Mortgage approvals data and US GBP data.
Level to consider following the technical analysis for the GBP/USD cross see the first resistance positioned @ 1.3058, today’s session high tested after the initial spike and which could represent a first hurdle to the upside. Broken this first level the Cable could have open road to reach 1.3125 (22 September high).