The GBP/USD finally emerged from its cocoon breaking its range to the upside on another round of UK improved data. Manufacturing and Industrial readings overcame expectations, helping the pair advance beyond the 1.6700 level in the European morning. With no retracements in between, the pair managed to extend up to 1.6754 early US session, breaking above a descendant trend line coming from this year high of 1.6821 and maintaining a strong upward short term tone: the hourly chart shows indicators still aiming higher after partially correcting extreme overbought readings, while 20 SMA stands almost vertical below current price. In the 4 hours chart indicators are giving some signs of exhaustion in overbought territory, yet as long as price holds above 1.6710, the downside will remain limited, with scope to test 1.6820 on a break of mentioned daily high.
Support levels: 1.6710 1.6660 1.6620
Resistance levels: 1.6760 1.6820 1.6860