FXstreet.com (Sydney) - After posting an intraday high of 1.6842, the GBP/USD dropped to 1.6704 but has consolidated trading at 1.6755. The pair is up 5.78% for the month, buoyed by a weakened dollar. The dollar is down 7.7% for 2009. The GBP/USD finds support at 1.6250 and resistance at 1.6750. If the GBP rallies, 1.7042 was the peak in August and may become the next resistance line.
The pound may yet be affected by reports of relevance this week including the Claimant Count Change and housing pricing. The pound was earlier boosted by the BoE's decision to continue expanding its QE strategy, investing a further £25bn in the British economy. While economic news coming out of the US last week were more positive, the FED's decision to retain interest at historic lows meant underlying weakness in the economy leaving the dollar exposed.