GBP/USD climbs to fresh 6-week tops, further beyond 1.3100 handle

Haresh Menghani FXStreet

• Thursday’s softer US CPI figures continue to weigh on the USD.
• Brexit optimism remains supportive of the positive momentum.
• Carney’s speech/US monthly retail sales eyed for fresh impetus.

The GBP/USD pair finally broke out of its Asian session consolidation phase and refreshed six-week tops in the last hour.

The pair built on its bullish trajectory further beyond the 1.3100 handle, with a combination of supporting factors confirming that the near-term positive momentum remains well intact.

The US Dollar continues to be weighed down by Thursday’s weaker than expected US consumer inflation figures, which coupled with Brexit optimism helped the pair to continue gaining positive traction for the fifth consecutive session.

Meanwhile, the latest leg of a sudden spike over the past hour or so could also be attributed to some fresh technical buying and hence, a follow-through up-move, towards testing 100-day SMA, now looks a distinct possibility.

Next in focus would be the BoE Governor Mark Carney's scheduled speech, which along with the release of US monthly retail sales data might produce some meaningful trading opportunities on the last trading day of the week.

Technical levels to watch

A subsequent up-move beyond mid-1.3100s is likely to get extended towards the 1.3180 region (100-day SMA) ahead of the 1.3200 round figure mark. On the flip side, the 1.3100 handle now becomes an immediate strong support to defend and is followed by support near the 1.3060-50 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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