GBP/USD: poised to challenge 2017 high

GBP/USD Current price: 1.3630

  • EUR/USD's bullish breakout boosted the Pound.
  • Weekly close above 1.3653 increases chances of a rally up to 1.4000.

The Sterling Pound trades at its highest since September 2017 against the greenback, as a bullish breakout in the EUR/USD pair put the dollar in sell-off mode across the board. European currencies are the ones benefiting the most from the latest dollar's slump. The pair trades as high as 1.3640 and holds nearby ahead of the release of US macroeconomic data, which includes key December inflation and retail sales figures.

The pair is technically bullish, but now faces a major hurdle at 1.3653, 2017 yearly high. If the pair closes the week above the level, speculative interest will start thinking on 1.4000, as a next probable bullish target. Short term, the 4 hours chart shows that the sharp advance pushed the price far above a still directionless 20 SMA, as it barely turned higher but remains below previous weekly highs. In the same chart, technical indicators lost upward strength, but hold near overbought readings,  not enough to confirm an interim top and a following downward corrective movement.  

Support levels: 1.3610 1.3575 1.3540

Resistance levels: 1.3655 1.3690 1.3730

View Live Chart for the GBP/USD

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