GBP/USD extends gains towards 1.3800 as USD remains pressured

GBP/USD preserves the upside momentum since Monday.
US Dollar Index stages decline sub-92 levels.
Sliding US Treasury yields undermine the greenback.

FXStreet Team FXStreet

After closing higher on Tuesday, the GBP/USD pair is extending the upside momentum in the early European session, touching the highest level in three days near 1.3775.

At the time of writing, GBP/USD is trading at 1.3774, up 0.19% on the day.

The US dollar index (DXY) weakness remains the primary driver of GBP/USD’s movements lately. The index refreshes multi-week lows near 91.70. The US Bureau of Statistics monthly report released on Tuesday showed the Core Consumer Price Index(CPI) rose to 1.6% on a yearly basis in March, which triggered a sell-off in the dollar.

On the other hand, GBP is riding higher on the optimism surrounding the “stage two” of lifting lockdown that began on Monday. On the economic data front, the UK Gross Domestic Product (GDP) rose by 0.4% in February, missing the market consensus of 0.6%. However, investors shrug off downbeat data and remain optimistic about future growth as the restrictions being eased would result in the pick of economic activities in the coming months.

As for now, the focus shifts toward speeches from the Bank of England( BOE) MPC Member Professor Jonathan Haskel and the Fed Chair Jerome Powell later in the day. Traders would look out for insights into the growth and inflation prospects before placing aggressive bets.

GBP/USD technical levels

GBP/USD

Overview
Today last price	1.3774
Today Daily Change	0.0022
Today Daily Change %	0.16
Today daily open	1.3752

Trends
Daily SMA20	1.3797
Daily SMA50	1.3858
Daily SMA100	1.3694
Daily SMA200	1.3346

Levels
Previous Daily High	1.3769
Previous Daily Low	1.3694
Previous Weekly High	1.3919
Previous Weekly Low	1.367
Previous Monthly High	1.4017
Previous Monthly Low	1.3671
Daily Fibonacci 38.2%	1.374
Daily Fibonacci 61.8%	1.3723
Daily Pivot Point S1	1.3708
Daily Pivot Point S2	1.3664
Daily Pivot Point S3	1.3633
Daily Pivot Point R1	1.3782
Daily Pivot Point R2	1.3813
Daily Pivot Point R3	1.3856

Author

FXStreet Team

FXStreet

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