GBP/USD rebounds from near three-week lows, steadily climbs back to 1.4120 area

GBP/USD attracted some dip-buying on Friday and recovered a part of the overnight losses.
The upbeat UK economic outlook, BoE rate hike expectations continued lending some support.
The Fed taper talks underpinned the USD and might cap gains ahead of the key US NFP report.

Haresh Menghani FXStreet

The GBP/USD pair managed to rebound around 35-40 pips from near three-week lows touched earlier this Friday and was last seen trading near the 1.4120 area during the early European session.

The pair once again showed some resilience below the 1.4100 round figure and attracted some dip-buying on the last trading day of the week. The British pound remained well supported by the optimistic outlook for the UK economic recovery from the pandemic, bolstered by the gradual easing of lockdown measures. It is worth reporting that the British government is all set to go ahead with its plan to fully end restrictions from June 21.

Apart from this, indications that the Bank of England could raise rates well into next year acted as a tailwind for the sterling. the BoE policymaker Gertjan Vlieghe indicated last week that the central bank was likely to raise rates earlier if the economy rebounds more quickly than expected. That said, a modest US dollar strength might hold bulls from placing aggressive bets and cap gains for the GBP/USD pair.

Thursday's upbeat US macro releases indicated that the US recovery is gathering pace. The stronger data further fueled speculations that the Fed may bring forward the timeline for tapering its bond purchases. Hence, the market focus will remain glued to the US monthly jobs report (NFP), which will be one of the most important pieces of economic data that would set the tone for the upcoming FOMC meeting later this month.

Heading into the key data risk, investors might be reluctant to place any aggressive bets. This, in turn, might keep a lid on any further gains for the GBP/USD pair, at least for the time being.

Technical levels to watch

GBP/USD

Overview
Today last price	1.4118
Today Daily Change	0.0011
Today Daily Change %	0.08
Today daily open	1.4107

Trends
Daily SMA20	1.4135
Daily SMA50	1.3958
Daily SMA100	1.3894
Daily SMA200	1.3548

Levels
Previous Daily High	1.4203
Previous Daily Low	1.4087
Previous Weekly High	1.4219
Previous Weekly Low	1.4092
Previous Monthly High	1.4234
Previous Monthly Low	1.3801
Daily Fibonacci 38.2%	1.4131
Daily Fibonacci 61.8%	1.4159
Daily Pivot Point S1	1.4061
Daily Pivot Point S2	1.4016
Daily Pivot Point S3	1.3945
Daily Pivot Point R1	1.4178
Daily Pivot Point R2	1.4248
Daily Pivot Point R3	1.4294

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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