GBP/USD pushing up ahead of EU GDP release, looking for 1.3980

  • GBP/USD putting in floor near 1.3780
  • Sterling bidding higher ahead of EU GDP, US CPI data

GBP/USD is finding buyers today, trading into 1.3915 ahead of European markets.

Except for retail sales on Friday at 09:30 GMT, there's little Sterling-specific data on the calendar this week, but traders can expect plenty of knock-on volatility from European GDP figures dropping at 10:00 GMT today, followed by US CPI data at 13:30.

GBP/USD has managed to catch a series of small lifts in the charts this week following two straight weeks of declines. The Sterling is gaining favour with traders, with positive economic figures for the UK outweighing negative Brexit worries, as tensions are still high with the kingdom and officials from the EU continuing to trade barbs from across the Channel.

Risk aversion is still weighing heavily on global markets, and the Sterling is no exception, with traders prone to abandon risk assets and go running for safe havens at a moment's notice. Risk aversion came into play recently when equity markets woke up to the realization that increasing inflation will lead to rising interest rates and a tightening of easy monetary policy that central banks have maintained for a decade, ending the era of 'easy money' brought about by the financial crisis in 2007-2008.

GBP/USD Technicals

The pair is currently testing to the upper bound of yesterday's range at 1.3924, while intraday support/resistance is priced in at 1.3781 and 1.3979 respectively, while Daily candles show GBP/USD recently rejecting the 34 EMA at 1.3839, potentially turning bullish and still trading well above the 200-day SMA.

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