GBP/USD climbs above monthly PP

• 56% of pending orders in the 100-pip range are to SELL
• 54% of open positions are to BUY
• Rate faces significant support circa 1.3380
• Upcoming events: US Building Permits, Current Account and Housing Starts

The British Pound appreciated against the US Dollar by 0.7% yesterday. Today the cable is expected to continue moving upwards and test the upper boundary of a falling wedge formation.

Industrial output in the US rose less than anticipated in November, as a decline in utilities production offset a post-hurricane jump in the gas and oil industries, the Federal Reserve stated on Friday. Overall industrial production rose 0.2%, following an upwardly-revised gain of 1.2% in the prior month and missing the expectations for a 0.3% surge. Meanwhile, the US manufacturing sector, which draws up nearly 12% of the country's economy, also grew 0.2% in the reported month.

US Building Permits

GBP/USD breaks above 1.3370

In first half of the previous trading session the currency pair struggled to bypass a combination of the weekly and monthly PP as well as the 55-, 100- and 200-hour SMAs, as expected. Nevertheless, the overall depreciation of the Dollar allowed the cable to surge to the 1.3420 mark and only then make a rebound. As the above yesterday's resistance has turned to support, the rate most probably will resume the surge, trying to properly reach an alleged upper trend-line of a senior falling wedge formation. However, the upcoming vote on tax reform is likely to alter this scenario and push the Dollar back to 1.3340. In support of this assumption, a majority of pending orders in 100-pip range are set to sell.

Hourly chart