- GBP/USD accelerated to the upside after breaking key technical levels
- Pound heads for highest close in two weeks.
- Rally supported by a weak USD.
GBP/USD extended gains during the US session and reached a fresh 2-week high at 1.3993. Afterward pulled back modestly and it was trading at 1.3965/70, up more than 50 pips for the day.
A weak US dollar across the board boosted the pair. The greenback started to slide after US inflation data (no positive surprise) and following political news from the US with President Trump selecting Mike Pompeo as Secretary of State, replacing Rex Tillerson.
In the UK, the Office for Budget Responsibility offered new economic projections and revised upwards GDP estimates for 2018. It helped the pound during the European session.
GBP/USD breaks key technical level
The pound is headed for the third gain in a row but today’s rally so far is being particularity positive from a technical perspective. GBP/USD broke a downtrend line from January highs and also consolidated on top of 1.3900.
The bullish tone remains intact although the rally stopped below 1.4000. The 1.4000 is a strong resistance area, also a psychological level. A break above would clear the way to more gains.
A slide back below 1.3950 would remove most of the short-term positive tone for the pound. Below support levels lie at 1.3915 and 1.3870. A relevant level is the uptrend line from February lows that stands at 1.3830 that is supporting the current up-move.
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.