GBP/USD analysis: bullish potential increased but not confirmed

GBP/USD Current price: 1.4000

  • UK empty macroeconomic calendar leaving Cable in dollar's hands.

  • USD sell-off could lead to an advance up to 1.4066, February 8th high.

The GBP/USD pair reached a fresh weekly high a couple of pips above 1.4000, stabilizing in the US afternoon around it. The Cable danced at dollar's pace this Wednesday, as there were no fresh macroeconomic releases coming from the UK. The pair fell down to 1.3799 right after the release of US inflation figures, which resulted above market's expectations, further fueling speculation that the US Federal Reserve will need to raise rates at a faster pace, but a u-turn in equities, with lost big ahead of the opening, sent the greenback into sell-off mode across the FX board. The UK macroeconomic calendar will remain empty this Thursday, which means that the pair will continue moving on dollar's woes. Short-term, the 4 hours chart indicates a modest upward potential, as the pair advanced above converging and directionless moving averages, while technical indicators remained within positive territory, having bounced from their mid-lines but now lacking clear directional strength. Steady gains beyond 1.4000, however, should favor additional gains ahead toward 1.4066, the high posted on February 8th.

Support levels: 1.3965 1.3920 1.3885

Resistance levels: 1.4035 1.4070 1.4110

View Live Chart for the GBP/USD

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