GBP/USD clamping onto highs through Asia, 1.4021 on deck

Sterling soars on Dollar selling.
Bullihs pressure remains strong following a quiet Asia session.

Joshua Gibson FXStreet

GBP/USD is trading tightly heading into the European markets, testing yesterday's high of 1.4016.

The Sterling began Wednesday declining in London trading, hitting a low of 1.3799 before better-than-anticipated US inflation data sent the GBP/USD soaring on Dollar weakness, with the pair climbing almost 220 pips in six hours, with little return since.

The UK has mid-level Retail Sales data coming on Friday at 09:30 GMT, but GBP/USD can expect market sentiment to determine the rest of the week's direction, with the US Dollar dump set to resume after several days of comeback for the US currency. That retracement appears to be over, with GBP/USD closing higher for three straight trading days.

GBP/USD Technicals

The pair has rejected support from the 34 EMA at 1.3853, and a continuation of the bullish trend will face resistance at 1.4066 and 1.4277, while on Daily candles bulls will be looking to capture the 1.4344 levels to send GBP/USD trading into 20-month highs.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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