GBP/USD rises for 3rd straight session, eyes on UK GDP

Dhwani Mehta FXStreet

The offered tone behind the US dollar gathered steam across the board over the last hours, fuelling further upside in GBP/USD.

The major is extending its winning streak so far this week, with the latest upmove backed by some fresh selling seen in the greenback broadly, in response to Cleveland Fed President Mester’s cautious take on US interest rates outlook in her latest speech.

Fed’s Mester: We have to change policy path if economic outlook changes

While on the GBP-side of the equation, the draft Brexit law has passed its House of Lords 2nd reading without vote and the bill now goes for consideration to its 'committee stage' on February 27. This implies that the UK PM May could trigger the Article 50 by March 31.

Data-wise, we have the UK’s second estimate Q4 GDP data alongside business investment data lined up for release in Europe, while the US has existing home sales data release. Besides, BOE MPC member Cunliffe and Fed official Powell will cross the wires ahead of the FOMC minutes due on the cards later today.

GBP/USD Levels to consider

The upside barriers are lined up at 1.2527 (Feb 16 high), 1.2550 (Feb 14 high) and 1.2585 (Feb 9 high). While supports are aligned at 1.2471 (10-DMA) and 1.2456 (5-DMA) and below that at 1.2433 (100-DMA).

1. R3 1.2483
2. R2 1.2463
3. R1 1.2447
PP 1.2427
1. S1 1.2411
2. S2 1.2391
3. S3 1.2375

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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