GBP/USD forming a short-term uptrend? This week's data, BoE to decide

GBP/USD slipped on Monday as dollar's overall strength aided by continued bad news from the euro-zone weighed but the pair remained supported near its 50-day SMA of 1.5650 well into mid-morning in New York.

At 3:27 GMT, a British pound was worth 1.5678 dollars, from Friday's close of 1.5780.

If the pair consolidates above 1.56 levels, it might help confirm an intermediate short-term upward trend, and in that case, next important target for GBP/USD will be 1.5838 (R2), a medium term support-turned resistance for the pair.

On the way up, GBP/USD may also find difficulty to pass through the 1.5800 level, its 50 percent Fibonacci retracement from early September lows and just above Friday's high of 1.5786 (R1).

That said, investors may have to wait for key data due this week for GBP, before taking a call, especially when momentum indicators remain slightly biased to the overbought zone.

October industrial production and November GDP estimate by NIESR are scheduled for Tuesday, ahead of the key Bank of Engalnd (BoE) rate decision on Thursday.

The central bank is expected to hold the official rate steady at 0.5 percent but the accompanying statement may provide cues about the overall health of the economy and therefore be crucial for the market.

If the fundamentals prove negative for the pair, one should look for an immediate support of 1.5602 (S1), probably a weak one, and then to a relatively strong one at 1.5510 (S2), as suggested by a medium-term suport line and the lower band of the Bollinger band.