GBP/USD breaks through 1.36 handle, highest since Sept. 2017

Haresh Menghani FXStreet

• USD accelerates bearish slide on German political news.
• US macro data eyed for some immediate USD respite.

The GBP/USD pair finally broke out of its Asian session consolidation phase and spiked through the 1.3600 handle to fresh 2018 highs.

A fresh wave of intense US Dollar selling pressure, led by the latest German political news, helped the pair to build on overnight sharp rebound from 1-1/2 week tops and continue gaining traction through the early European session.

Adding to this, possibilities of some trading stops being taken out on a sustained move above the 1.3565 region also seems to have collaborated to the pair's sharp upsurge over the past couple of hours.

Traders seemed to have largely ignored a goodish pickup in the US Treasury bond yields, with the prevailing strong bearish sentiment surrounding the greenback acting as an exclusive driver of the pair's bullish momentum.

With today's strong up-move, the pair has now added in excess of 150-pips as traders now look forward to the US economic docket, featuring the release of inflation figures and monthly retail sales, for some fresh impetus.

Technical levels to watch

From current levels, immediate resistance is now pegged near 2017 swing highs, around the 1.3655-60 region, above which the pair seems all set to move past the 1.3700 handle.

On the flip side, any pull-back below the 1.3600 handle might now find immediate support near the 1.3585-80 region, which if broken might drag the pair back towards the key 1.3500 psychological mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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