GBP/USD clings to gains near 1-1/2 week tops, US data awaited

Analysis General

Published: 2/15/2018 7:15:00 AM

   •  USD selling seems to have abated for the time being.

   •  Rising US bond yields now seemed to cap gains.

   •  US economic data eyed for some fresh impetus. 

The GBP/USD pair has managed to hold in positive territory for the fourth consecutive session and remained within striking distance of 1-1/2 week tops touched earlier.

Persistent US Dollar selling pressure, despite Wednesday's stronger US CPI print, assisted the pair to break out of its Asian session consolidation phase and build on the overnight rally of over 200-pips. 

The pair touched an intraday high level of 1.4078 but struggled to gain any follow-through traction amid easing USD bearish pressure. A fresh leg of an uptick in the US Treasury bond yields, backed by growing bets that the Fed might raise interest rates four times this year, seems to be only factor capping additional gains, at least for the time being. 

With the USD price dynamics acting as an exclusive driver of the pair's momentum on Thursday, traders now look forward to the US macro data, due for release during the early NA session, for some fresh impetus. 

Technical levels to watch

A follow-through buying interest has the potential to lift the pair back towards reclaiming the 1.4100 handle before eventually darting towards the next major hurdle near the 1.4140 region. On the flip side, any meaningful retracement now seems to find immediate support near the 1.40 handle, which if broken could prompt some additional profit-taking slide towards the 1.3965 horizontal support.

Tag: General
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