Nick Nasad
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GBP/USD: Pound Pops Out Of Short Term Channel, Ready to Rally Further?

Last week, I wrote about the positive UK retail sales report and how it likely meant further strength for the Pound coming into this week.

Well, after trading sideways during the US holiday, the GBP/USD starts the NY morning session with a break out of that range which coincides with a push through resistance at 1.6560. This is a sign that the pair is ready to extend its rally after that retail sales report helped solidify the bottoming action around 1.6320.

If we look at the GBP/USD from a daily timeframe its in a wider consolidation, but I like that the pair found support around its 55-ema and after rallying in November this consolidation could be a springboard to another rally. A push above 1.65 would be a big sign that its ready to do so. Let's keep an eye on the technical picture and on any incoming UK data that shows positive surprises (though today we had a weaker than expected reading on manufacturing orders).