GBP/USD holds steady near weekly high, eyeing 1.3600 mark amid weaker USD

GBP/USD gained strong positive traction on Wednesday and shot to a fresh weekly high.
Retreating US bond yields undermined the USD and remained supportive of the move.
Traders might be reluctant to place aggressive bullish bets ahead of the US CPI report.

Haresh Menghani FXStreet

The GBP/USD pair maintained its strong bid tone heading into the North American session and was last seen trading near the weekly high, just below the 1.3600 mark.

Following the two-way/directionless price moves witnessed over the past two trading sessions, the GBP/USD pair caught fresh bids on Wednesday and was supported by modest US dollar weakness. A sharp pullback in the US Treasury bond yields, along with the risk-on impulse turned out to be key factors that undermined the safe-haven greenback.

Apart from this, the intraday positive move could further be attributed to some technical buying above the 1.3550-1.3555 horizontal resistance. It, however, remains to be seen if bulls are able to capitalize on the upward trajectory or opt to lighten their bets ahead of the latest US consumer inflation figures, scheduled for release on Thursday.

It is worth recalling that the markets have been pricing in a more aggressive policy response by the Fed to combat stubbornly high inflation and anticipate a 50 bps rate hike in March. Hence, the US CPI report will play a key role in determining the Fed's policy outlook, which will influence the USD and provide a fresh directional impetus to the GBP/USD pair.

In the meantime, the US bond yields and the broader market risk sentiment will continue to play a key role in driving the USD demand. This, in turn, should provide some impetus to the GBP/USD pair and allow traders to grab some short-term opportunities amid absent relevant market-moving economic releases, either from the UK or the US.

Technical levels to watch

GBP/USD

Overview
Today last price	1.3579
Today Daily Change	0.0028
Today Daily Change %	0.21
Today daily open	1.3551

Trends
Daily SMA20	1.3554
Daily SMA50	1.3446
Daily SMA100	1.3509
Daily SMA200	1.3708

Levels
Previous Daily High	1.3564
Previous Daily Low	1.3508
Previous Weekly High	1.3628
Previous Weekly Low	1.3387
Previous Monthly High	1.3749
Previous Monthly Low	1.3358
Daily Fibonacci 38.2%	1.3543
Daily Fibonacci 61.8%	1.3529
Daily Pivot Point S1	1.3518
Daily Pivot Point S2	1.3485
Daily Pivot Point S3	1.3462
Daily Pivot Point R1	1.3574
Daily Pivot Point R2	1.3597
Daily Pivot Point R3	1.363

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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