Sterling Heads Higher After Housing Data

U.K. pound in forex trading

The U.K. pound enjoyed a burst of energy this morning in forex trading. Thanks to housing data, the sterling moved up above 1.6700 in currency trading on the FX market. However, thanks to information on GDP, the U.K. pound has pulled back a bit in forex trading.

Sterling is in consolidation mode right now, sitting at a little bit above 1.6600 in currency trading. While the housing data is encouraging, the fact remains that there are still some economic concerns with regard to growth, as well as how quickly the British economy will be able to recover. More economic data will be needed in order to determine the short-term direction of the U.K. pound in forex trading. Boris Schlossberg reports in FX360 on the possibility of a break-out for the sterling in currency trading:

This week’s manufacturing and services PMI data will be crucial in determining whether GBP/USD could climb higher. Tonight’s break out opens the scope for a potential run to 1.700 but that scenario would require fundamentals to show further signs of recovery in economic activity. If the PMI surveys demonstrate some slippage cable is much more likely to hit 1.60 than 1.70 in the near term.