• USD fails to gain any respite from incoming stronger data.
• Bulls now eye Friday’s UK retail sales data for fresh impetus.
The GBP/USD pair built on its steady climb through the early NA session and spiked to the 1.4100 neighborhood after mixed US data.
The US economic data released on Thursday showed Producer Prices rose more than expected in January. The two critical regional Fed manufacturing indicators, revealing input cost inflation, also did little to provide any respite for the US Dollar bulls and remained supportive of the pair's up-move.
Meanwhile, the release of weekly jobless claims data passed unnoticed, with the prevailing USD bearish sentiment turning out to be a key theme in the FX market and an exclusive driver of the pair's momentum on Thursday.
Bulls, however, seemed lacking strong conviction and failed to lift the pair back above the 1.4100 handle as focus shifts to Friday's UK consumer spending data - monthly retail sales, which might influence the British Pound's near-term trajectory.
Technical outlook
Valeria Bednarik, American Chief Analyst at FXStreet writes: “The pair is bullish short term, as in the 4 hours chart, technical indicators are hovering near overbought territory, with the RSI already gaining upward traction, as the pair develops well above its moving averages. A major resistance comes at 1.4080, the 61.8% retracement of February's decline, with a break above it favoring an extension up to 1.4150, February 5th daily high.”
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