The pound managed to break above 1.7063, reaching fresh multi-year highs above 1.71 after the dollar collapsed on end-of quarter moves.
Having the GBPUSD overcome the 1.6998 cycle peak and psychological/ option barrier at 1.7000 and the 2009 peak at 1.7044, reinforces a bigger picture bullish view.
Markit’s manufacturing PMI for the UK is expected to slide to 56.7 in June from 57 in May. So a better than expected Markit’s manufacturing PMI for the UK may get one more reason for the pound to rise.
Expecting downward move to 1.7009 on a break below previous Fibonacci extension at 1.7089 (scenario 1) or a break above the previous day high at 1.7114 could push prices up to 1.7194 (scenario 2).