[GBP/USD]

[GBP/USD] has gone stop tripping on the break above the 200-day mov ave at 1.5550/55. Clearly a key target for momentum types and bulls alike, as Cable had not traded above there since Jan 29. Apart from the under pressure housing sector, many UK releases are coming in fairly robust, i.e. last week's 1.1% q/q Q2 GDP result and most recently today's 33 CBI retail sales balance. Diverging fundamentals (with the US) are also an issue here and a prop, but it is worth noting that 1.5600 drew fairly sustained selling pressure from retail accounts last time it was visited in mid-Feb. The 1.5577 best is a five month peak and contacts also talk of positive flows vs the Euro and Yen in this run too.