GBP/USD rises further, prints fresh highs above 1.3200

GBP/USD extends gains as the US Dollar tumbles across the board.
Cable head for best day in months but still down over the week.

Matías Salord FXStreet

The GBP/USD pair rose further during the American session on the back of a decline of the US Dollar and amid an improvement of risk appetite. It printed a fresh 2-day high at 1.3206 and it was hovering slightly below 1.3200.

Cable si rising more than a hundred pips on Friday. It received support from UK data: Q1 GDP rose above expectation. Later during the day, the slide of the US dollar boosted the pair further. The US Dollar Index, dropped toward 94.00 retreating further after hitting yesterday 1-year intraday highs.

Technical Outlook

The correction of the greenback and the sharp rebound of the GBP/USD from near the 1.3100 area could point to an extension of the recovery. But the bearish tone is likely to persist. “GBP/USD is set to be capped between 1.3100 and 1.3480 representing 50% and 38.2% Fibonacci retracement of the post-Brexit slump”, wrote FXStreet's European Chief Analyst, Mario Blascak.

While the short-term outlook could favor some consolidation of a recovery for the next sessions, the main trend still points to the downside. Blascak warns that if GBP/USD breaks below the psychological 1.3000 level, it would open the way for 1.2770.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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