GBP/USD consolidates strong weekly gains, slides below 1.4300
- GBP/USD off highs, still higher for the day.
- EUR rally and USD stabilization limited the upside.
The GBP/USD pair is rising modestly on Thursday. The recovery of EUR/GBP limited the upside of cable. Also, the negative tone around the greenback eased.
GBP/USD peaked earlier at 1.4343, the highest level since June 2016. Afterward pulled back finding support above 1.4270. It was trading at 1.4280/90, up 50 pips for the day, posting the fourth consecutive daily gain.
The pound is consolidation strong weekly gains supported by UK data and better expectation regarding Brexit negotiations. The main driver of the GBP/USD rally had been the decline of the US dollar across the board. The US dollar Index continued to slide today and reached at 88.43, the lowest since December 2014.
UK Prime Minister May and US President Trump meet in Davos today. In her speech at the WEF May defended free trade and globalization. The words from the leaders are unlikely to have an impact on markets but the meeting between both leaders takes place after a cancellation of Trump’s visit to the UK.
Technical levels
Cable is headed toward the sixth weekly gain in-a-row. Technical reading show overbought readings but so far no signals of a potential correction. To the upside, resistance levels might be seen at 1.4380, 1.4440 and 1.4530. On the flip side, supports might now lie at 1.4260 (Jan 24 high), 1.4180 and 1.4050.