GBP/USD: Poised to extend gain beyond multi-month high above 1.4160


  • GBP/USD refreshes daily highs in the Asian session.
  • Risk-aversion underpins the demand for the US dollar.
  • Investors keep their eye on UK Claimant Count and US Housing data.

The GBP/USD pair is trading with a modest gain in the Asian session. The pair remains in a steady range following the previous two sessions, after testing the daily lows at 1.4000 on May 13.

At the time of writing, the GBP/USD pair is trading at 1.4153, up 0.14% on the day.
The strength in cable, owing to the optimism on the reopening of the economy amid faster vaccination ahead of its counterparts, keeps the GBP/USD pair constructive near the higher levels. Indoor dining, cinemas, schools, and universities were back to normal. The ban on international flight was also lifted under phase 3 of the economic reopening plan on Monday.

The economy is expected to show the effect of easing restrictions in the coming months. However, the UK PM Boris Jhonson remains concerned about the final unlocking phase scheduled for June 21 as the Indian corona variant takes hold in part of England.

Moving on, the UK Brexit Minister, David Frost expressed his concerns over regulation between Northern Ireland and the rest of the US as well as the firms' finance issues with the EU. The Brexit chaos remains a pain area for the cable lately.

On the other hand, the subdued tone around the US dollar amid lack of buying interest pressurized the US dollar index (DXY) at 90.20 near the multi-month low. 

The disappointing retail sales data on Friday did not go over well with the market. Fed officials remain concerned over the uneven economic recovery and shrug off any inflationary pressure that aligned with the Fed’s commitment towards the ultra-easy monetary policy. 
As for now, investors turn their attention to the UK Claimant Count Change for April, Unemployment Rate, and Average earnings data . On US economic data, Building Permits and Housing Starts will be in focus to gauge the market sentiment.
 

GBP/USD Additional Levels

GBP/USD

Overview
Today last price 1.4143
Today Daily Change 0.0045
Today Daily Change % 0.32
Today daily open 1.4098
 
Trends
Daily SMA20 1.3956
Daily SMA50 1.3876
Daily SMA100 1.3814
Daily SMA200 1.3475
 
Levels
Previous Daily High 1.4111
Previous Daily Low 1.4036
Previous Weekly High 1.4166
Previous Weekly Low 1.3982
Previous Monthly High 1.4009
Previous Monthly Low 1.3669
Daily Fibonacci 38.2% 1.4082
Daily Fibonacci 61.8% 1.4065
Daily Pivot Point S1 1.4052
Daily Pivot Point S2 1.4007
Daily Pivot Point S3 1.3977
Daily Pivot Point R1 1.4127
Daily Pivot Point R2 1.4156
Daily Pivot Point R3 1.4202

 

 

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