The Cable has come well-off its highs on relatively light volume in what we view as healthy profit taking. As expected, the Cable is having some trouble leaving behind the highly psychological 1.50 level.

The weakness of the Pound is reflected in the EUR/GBP finally finding a bottom. The present downturn in the GBP/USD was triggered by no discernable news/data, which leads us to our conclusion of fundamental profit-taking.

Although the Cable has dipped below our 2nd tier uptrend line and April 6 highs in the process, the currency pair managed to stabilize above April 15 lows.

As a result, a return to the topside could come quickly. Hence, we maintain our positive stance on the GBP/USD until further notice. Britain won't release any economic data of significance this week, meaning the GBP/USD should follow a positive correlation with U. S. equities while maintaining relative strength due to Britain's upbeat data over the past month.

Fundamentally, our 1.4946 and 1.4988 supports turn resistance while we maintain our resistances of 1.5028, 1.5080, and 1.5121. The 1.50 level remains a key psychological barrier while 1.45 serves as a psychological cushion.

To the downside, we maintain our supports of 1.4883, 1.4834 and 1.4770 with fresh supports of 1.4730 and 1.4655. The GBP/USD is currently exchanging at 1.4889.

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