The USD has rallied over the past two months as broadly stronger economic data out from the US fuelled expectations that the Federal Reserve will raise interest rates sometime in 2015.
Today on the economic agenda from the U.K we have the BoE Quarterly inflation report and the ILO unemployment rate that is expected to fall from 6.0% to 5.9% showing a better labor market and that the UK economy is in the right track.
GBPUSD rallied on yesterday session closing near the high of the day and engulfing the previous day candle thus forming a bullish engulfing pattern. The pair is still trading below the 10 day moving average and the stochastic is showing an oversold market setting higher lows and price is making lower lows, signs that the downside may begin to get exhausted.
Expecting upward move to 1.6158 on a break of above previous day high at 1.6021 (scenario 1).