FXstreet.com (London) - GBP/USD has drifted lower overnight, with a high of 1.5738 ducking away from the 200d ma.

GBP/USD eyes US data

Yesterday Jobless Claims decreases to 334K vs 346K while US May Retail Sales (MoM) are up to 0.6% vs 0.1% in Apr. Ex-autos 0.3% vs. -0.1%. Today, we will see May PPI, May industrial production and Michigan confidence on the tapes for June. TD Securities said for the latter, markets are looking for an unchanged reading of 84.5 after what was already a pretty big jump higher in May. For IP, markets are looking for a moderate 0.2% M/M gain, reversing only part of the prior month’s loss.

Axel Rudolph, Senior Analysts for Commerbank said that GBP/USD is at the top of its 3 month up channel and 200 day moving average at 1.5701/03. This is a resistance area they expect to cap. They suspect that we are now trading towards the end of the corrective move higher. He explained that a break below the 1.5490 June 7 low is needed to alleviate immediate upside pressure and signal a slide back to the 55 day moving average at 1.5334 en route to the base of the channel at 1.5044. However, he warns that above 1.5703 lies the 1.5797 200 week moving average and 1.6040, the 78.6% Fibonacci retracement of the down move seen this year.