GBP/USD moves to a fresh high in pursuit of the 1.42 area


  • GBP/USD is on the warpath as the US dollar loses traction and support of yields. 
  • Bulls target the 1.42 area in a break on the daily resistance.

GBP/USD is currently trading at 1.4166 adding 40 pips on the day so far to trade 0.3% higher.

Cable has travelled between a low of 1.4125 to a high of 1.4174 while the greenback teeters near multi-month lows with Treasury yields stalling due.

There are renewed expectations that US interest rates will remain low for an extended period after more Fed talk advocated for a lower-for-longer regime. 

Dallas Federal Reserve President Robert Kaplan on Monday reiterated his view that he does not expect interest rates to rise until next year.

Additionally, Federal Reserve's vice chairman Richard Clarida has said the Fed will respond to higher inflation should that be required. He, amongst others, have constantly insisted that now is not the time to start taper talk while employment remains deep in a hole.

The US central bank will also release minutes from its most recent meeting, which will give traders a lot of hints about where monetary policy is headed this year.

The market's thinking is that the central bank will tolerate what it sees as a temporary acceleration in inflation, which will keep the dollar lower against most major currencies.

Domestically, sterling has been buoyed recently as investors continue to cheer the easing of strict coronavirus restrictions on economic activity.

With that being said, a note from earlier in the UK's The Times warns that the UK's PM Boris Johnson may have to rethink social distancing relaxations if the Indian variant takes a hold. 

GBP/USD technical analysis

Meanwhile, as per the prior analysis, GBP/USD Price Analysis: Bulls looking for breakout to the topside, the bulls are indeed moving on with their plans to take down the daily highs in pursuit of the psychological 1.42 area.

Prior GBP/USD analysis, daily and 4-hour time frames

'Nevertheless, the 4-hour chart is forming a bullish reverse head and shoulders formation and on completion, the bullish price action could well burst into life.'

'The right-hand shoulder of the bullish reverse head and shoulders is in the process of being formed. 

Bulls will want to see the price break the prior highs within this formation and hope for a discount on a retest of the structure before committing to the bullish thesis.'

Progress update, 4-hour and daily charts

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD holds firm above 1.1500 amid US Dollar pullback

EUR/USD holds firm above 1.1500 amid US Dollar pullback

EUR/USD continues its winning streak for the third successive day, holding firm above 1.1500 in the European session on Friday. The pair stands tall as the US Dollar loses ground, possibly driven by a technical pullback and receding fears over a likely US military attack on Iran. Geopolitics remain in focus. 

GBP/USD: Upside stalls below 1.3500 after weak UK Retail Sales data

GBP/USD: Upside stalls below 1.3500 after weak UK Retail Sales data

GBP/USD pares gains while trading under 1.3500 in European trading on Friday. The pair stalls its upside after the Pound Sterling faces headwinds from the downbeat UK Retail Sales data for May. Broad US Dollar weakness, amid easing Middle East tensions, keeps the major underpinned. 

Gold price remains on track for weekly losses amid hawkish Fed

Gold price remains on track for weekly losses amid hawkish Fed

Gold price maintains its offered tone through the early European session on Friday and remains on track to register weekly losses. The Federal Reserve's hawkish pause earlier this week is seen acting as a tailwind for the US Dollar and turning out to be a key factor driving flows away from the non-yielding yellow metal.

Shiba Inu Price Forecast: SHIB demand wanes as holders offload meme tokens 

Shiba Inu Price Forecast: SHIB demand wanes as holders offload meme tokens 

Shiba Inu (SHIB) extends its decline at the time of writing on Friday after dropping nearly 5% so far this week. The on-chain data supports a correction ahead, as SHIB holders are unloading tokens amid the escalating Iran-Israel war.

In the Eurozone, inflation is also a monetary phenomenon

In the Eurozone, inflation is also a monetary phenomenon

Monetary aggregates continue to be closely monitored by the European Central Bank (ECB), a sign that, despite the passage of time and the increasing complexity of financing circuits, quantitative theory remains relevant. 

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025