GBP/USD: rally toward 1.4345 continues

GBP/USD Current price: 1.4319

  • Pound benefiting from broad dollar's weakness.
  • US data up next could temporarily interrupt the rally, but hardly affect the dominant bullish trend.

The GBP/USD trades above the 1.4300 level, the second best high ever since the Brexit referendum, when the pair shed over 1,500 pips in a day. The Pound is benefiting from broad dollar's weakness and the absence of local data that can affect it negatively. The UK will have quite a busy week, starting tomorrow with the monthly employment data release, and later on Wednesday with fresh inflation figures. Both releases usually have a strong impact on Pound, but the largest one will probably take place on Wednesday when investors will be able to compare wages' growth with inflation and infer the possible effects on future BOE's decisions.

Technically, the pair is short-term bullish, as in the 4 hours chart, the 20 SMA maintains a strong upward slope near the daily low, while technical indicators reached overbought territory and turned flat, reflecting the current wait-and-see stance ahead of US data, including  March retail sales and the preliminary NY Empire manufacturing index for April. Nevertheless, seems unlikely that the greenback will get too much love even with good macroeconomic numbers, and if it does, it will likely be temporal. January high is at 1.4345, now the immediate resistance and possible bullish target, with a break above it probably favoring an extension up to the 1.4400 figure.

Support levels:  1.4295 1.4260 1.4225

Resistance levels: 1.4345 1.4380 1.4400

View Live Chart for the GBP/USD

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