GBP/USD pushes to session highs above 1.28

Eren Sengezer FXStreet

The GBP/USD pair rose above the 1.2830 level (European session high) to a new session high at 1.2845 in the American session as the US Dollar Index is having a difficult time moving away from multi-month lows, which was set earlier in the session. As of writing, the pair was trading at 1.2840, up 0.35% on the day.

After failing to hold above the 99 level on Tuesday, the US Dollar Index encountered a fresh selling wave following the weak macro data from the U.S. and fell to 98.65 for the first time since Donald Trump won the election in mid-November.

Although today's macro data from the U.S. were not considered as market movers, they gave an excuse to the investors to continue to stay away from the USD and remain focused on European currencies, which have been performing strongly since Macron beat Le Pen in the first round of French presidential election. However, the fact that the EUR/GBP pair has been able to build up on yesterday's gains on Tuesday for the same reason, has been limiting the bullish momentum on the GBP/USD amid a strong inverse correlation.

Technical levels to consider

The pair could encounter the first technical resistance at 1.2875 (Apr. 18 high) ahead of 1.2900 (psychological level) and 1.2950 (Oct. 3 high). To the downside, supports could be seen at 1.2760 (Apr. 21 low), 1.2700 (psychological level) and 1.2615 (Mar. 27 high).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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