After getting repulsed from the 1.5000 level yesterday, sterling has recharged and is making another attempt to break through this psychological level—or at a minimum—close very near the weekly highs.

There were no major fundamentals out of the UK overnight and the US data proved GBP supportive, but this price action seems to indicate that there remains a strong technical bias toward the pound. After slipping overnight, the pound passed a mere two pips through yesterday’s indicated support level of 1.4860 and then rallied hard. From a psychological perspective if the GBP/USD pair can hold a close over 1.5000, I have to give the initial edge next week to the sterling bulls and a continued run to resistance around the 1.5130 level would not be hard to imagine. A close below the 1.5000 level today may indicate that the bulls have been somewhat exhausted and my short term bias toward this pair would probably favor an initial downside move. All things considered though, we still have a strong uptrend that has been intact since June 8th and at this point, there is nothing to indicate a shift in market sentiment.