GBP/USD: at a key inflection point

GBP/USD Current price: 1.4065

  • US data may only affect the pair temporarily if dollar's positive.
  • Dollar's weakness pushing GBP/USD higher, watch 1.4080.

The GBP/USD pair extended its advance up to 1.4076 early London, holding on to gains above the 1.4036 session´s  low. There were no relevant headlines coming from the UK, but the kingdom will present its January retail sales this Friday. A bunch of US data is coming to the wires although none is a big market mover. In the meantime, stocks hold on to gains but pared their advances, as well as Treasury yields.

The pair is bullish short term, as in the 4 hours chart, technical indicators are hovering near overbought territory, with the RSI already gaining upward traction, as the pair develops well above its moving averages. A major resistance comes at 1.4080, the 61.8% retracement of February's decline, with a break above it favoring an extension up to 1.4150, February 5th daily high.

Support levels: 1.4020 1.3970 1.3930

Resistance levels: 1.4080 1.4120 1.4150

View Live Chart for the GBP/USD

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