GBP/USD reached a fresh 3-week high at 1.2530 during the America session, but it failed to extend gains in a significant way above 1.2500. The pair is consolidating gains, hovering around 1.2515, moving in a modest range as volatility across the forex market remains low.
The pound today was among the top performers supported by better-than-expected reports of the UK retail sales sector. No economic report is due tomorrow in the UK. In the US, attention is on the health care vote. On Friday, the durables goods orders and the PMI reports will be released.
UK retail sales rebound sharply in Feb, a big beat
Technical outlook
“The pair maintains its positive tone, although the intraday advance stalled a few pips below a major resistance, the 23.6% retracement of the January's rally at 1.2540, now the level to surpass to confirm additional gains”, said Valeria Bednarik, Chief Analyst at FXStreet.
According to her, the 4-hour chart shows the price well above a bullish 20-SMA, but technical indicators are retreating from overbought levels, “reaffirming the case for the need of a bullish breakout of the mentioned Fibonacci resistance before considering going long.”
GBP/USD headed to congestion resistance at February/March range trade at 1.2580? - Scotiabank
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