Good morning everyone.
After Fridays failed attempts at 1.55 traders took advantage of the poor early week liquidity to push the pair over and into strong gains.
The upper trend line of the short term channel is currently being contested.
A decent break here will target the 100 dma at 1.5573.
Later this week we have Manufacturing PMI(Wed) and Services PMI (Fri). Manufacturing and production has been the weak link in regards to the UK economy but services have been rebounding strongly. As services make up around 70% of GDP this is the figure to watch.
A poor Mfg PMI could take the shine off the rally but it would be temporary. A good services figure will likely push the pair even higher.
