GBP/USD challenges 4-week highs around 1.2480

GBP/USD moves higher to the 1.2480 area.
Steady trade conditions persist on Good Friday.
US CPI came in below estimates in March.

Pablo Piovano FXStreet

The buying interest around the sterling remains well and sound at the end of the week, with GBP/USD flirting with multi-week highs around 1.2480/90.

GBP/USD faces strong resistance at 1.2500

Cable is extending the weekly recovery and is now advancing for the fourth consecutive session to the area below the key barrier at 1.2500 the figure, or 4-week highs.

The unabated selling bias in the greenback is collaborating with the extra upside in the pair, which is already trading at shouting distance from the (61.8%) Fibo retracement of the March sell-off at 1.2516.

In the US docket, inflation figures tracked by the CPI came in short of expectations in March. In fact, headline consumer prices contracted 0.4% inter-month and rose 1.5% from a year earlier. Core prices contracted 0.1% MoM and rose 2.1% over the last twelve months.

GBP/USD levels to consider

As of writing, the pair is gaining 0.16% at 1.1477 and a breakout of 1.2485 (monthly high Apr.10) would open the door to 1.2648 (200-day SMA) and then 1.2725 (monthly low Feb.28). On the other hand, the next support emerges at 1.2163 (monthly low Apr.6) would expose 1.2093 (38.2% Fibo of the March drop) and finally 1.1832 (23.6% Fibo of the March drop).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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