GBP/USD hits weekly highs, remains limited below 1.3640
- Cable heads for highest daily close in a month.
- The pound continues to benefit from BoE expectations.
- Mixed US data: initial jobless claims rise unexpectedly.
The GBP/USD pair rose to 1.3637, after the beginning of the American session reaching the highest level in a week. Later the pair pulled back toward 1.3600 but still was holding onto gains, for the third consecutive day and about to post the highest close in a month.
The pound remains strong and is also up versus the euro as EUR/GBP trades under 0.8350, at the lowest in two weeks after higher-than-expected UK inflation data and also amid concerns regarding the Ukrainian border.
The dollar is mixed on Thursday, with the DXY up 0.04%. Economic data from the US came in mixed. Initial Jobless claims rose unexpectedly to the highest level in three weeks, while housing starts dropped more than forecast. Market participants mostly ignored the numbers. Their attention is set on headlines about Russia, Ukraine and the US.
US President Biden and other American authorities warned about an imminent attack. The situation triggered a decline in equity markets and sent Treasuries higher. The decline in bond yields weakened the greenback.
Levels to watch
A daily close above 1.3600 would be a positive development for the pound. In terms of levels, the next resistance stands at the 1.3645 area (last week high) followed by 1.3662.
On the downside, below 1.3600, the next support stands at 1.3560. A break lower would turn the very short-term bias to bearish/neutral.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
