GBP/USD spikes above 1.4200 on renewed USD weakness

GBP/USD advanced to a fresh daily high above 1.4200.
US Dollar Index turned south after staying quiet around 90.00.
Focus shifts to high-tier macroeconomic data releases from US on Tuesday.

Eren Sengezer FXStreet

The GBP/USD pair spent the first half of the day fluctuating in a tight range around 1.4180 but gained traction during the American trading hours. As of writing, the pair was trading at a fresh daily high of 1.4118, rising 0.22% on a daily basis.

In the absence of significant fundamental drivers and macroeconomic data releases, month-end flows seem to be causing the greenback to weaken against its major rivals. The US Dollar Index is currently losing 0.22% on the day at 89.86. Additionally, the thin trading conditions due to the Memorial Day holiday in the US seem to be allowing major pairs to make sharp movements.

There won't be any data releases featured in the UK economic docket on Tuesday. Later in the day, the ISM Manufacturing PMI, which is expected to improve to 61 in May from 60.7 in April, from the US will be looked upon for fresh impetus.

GBP/USD outlook

FX Strategists at UOB Group think that GBP/USD could post additional gains if it manages to clear the resistance at 1.4235.

"GBP has to close above 1.4235 before a sustained advance can be expected," strategists noted. "On the downside, a breach of 1.4110 would indicate that the upside risk has dissipated. Looking ahead, the next resistance levels above 1.4235 are at 1.4265 and 1.4290."

Additional levels to watch for

GBP/USD

Overview
Today last price	1.4214
Today Daily Change	0.0024
Today Daily Change %	0.17
Today daily open	1.419

Trends
Daily SMA20	1.4082
Daily SMA50	1.3926
Daily SMA100	1.3872
Daily SMA200	1.3528

Levels
Previous Daily High	1.421
Previous Daily Low	1.4136
Previous Weekly High	1.4219
Previous Weekly Low	1.4092
Previous Monthly High	1.4009
Previous Monthly Low	1.3669
Daily Fibonacci 38.2%	1.4165
Daily Fibonacci 61.8%	1.4182
Daily Pivot Point S1	1.4148
Daily Pivot Point S2	1.4105
Daily Pivot Point S3	1.4073
Daily Pivot Point R1	1.4222
Daily Pivot Point R2	1.4253
Daily Pivot Point R3	1.4296

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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