GBP/USD pushes higher to 1.3600, fresh peaks
- Cable extends the bull run to the 1.3600 neighbourhood.
- The offered tone around the greenback keeps fuelling the upside.
- Strong support emerged in the 1.3460 region last week.
The weakness surrounding the greenback is now helping GBP/USD to advance to the area of daily highs in the 1.3600 region.
GBP/USD met support near 1.3460
After briefly testing the area of YTD lows around 1.3460 during last week, Cable sparked a correction lower along with the rest of the risk-associated complex and always on the back of renewed selling bias around the buck.
The Sterling has come under renewed selling pressure after the Bank of England left its monetary policy unchanged at last Thursday’s meeting. The post-BoE decline added to the already dovish comments from Governor Carney in previous days, while the softer-than-expected Q1 GDP readings also added to the downbeat sentiment.
Market expectations are now divided on the likeliness of a rate hike over the summer, as the BoE should have enough time to re-assess new data, while prospects for the UK economy should improve amidst a better tone around the Brexit negotiations, all morphing into extra support for the British Pound.
GBP/USD levels to consider
As of writing, the pair is gaining 0.33% at 1.3587 and a break above 1.3603 (high May 14) would aim for 1.3658 (2017 high Sep.20) and then 1.3712 (low Mar.1). On the flip side, the next down barrier lines up at 1.3458 (2018 low May 4/Jan.11) seconded by 1.3400 (psychological level) and finally 1.3304 (monthly low Dec.12).