Pound against the U.S. dollar exchange rate comment September 6, 2010

Pound against the U.S. dollar exchange rate comment September 6, 2010
GBP/USD to consolidate with risks skewed higher. Cable underpinned by weak USD sentiment, stronger investor risk appetite. But GBP/USD topside limited by worse-than-expected drop in UK services PMI to 16-month low of 51.3 in August from 53.1 in July (vs 52.8 forecast), lingering concerns over negative impact of fiscal tightening on UK growth. GBP/USD daily chart mixed as MACD bearish, but stochastics rising from oversold. Resistance at 1.5468 (Friday's high), then at 1.5491 (Wednesday's high); breach would expose upside to 1.5580 (Aug. 30 high), then 1.5597 (Aug. 26 high), 1.5620 (Aug. 23 high) and 1.5672 (Aug. 19 high). Support at 1.5387 (Friday's low); breach would target 1.5348 (Thursday's low), then 1.5325 (Tuesday's low, coinciding with 38.2% Fibonacci correction of advance from May 20 low of 1.4230 to Aug. 6 high of 1.6002), 1.5123 (July 21 reaction low, matching 100-day moving average and 50% correction) and psychological 1.5000.