- GBP/USD gained positive traction for the fourth consecutive session on Thursday.
- A modest USD rebound from multi-week lows capped the upside for the major.
- Mostly upbeat US economic releases did little to provide any meaningful impetus.
The GBP/USD pair held on to its intraday gains, albeit lacked any follow-through buying and remained capped below the 1.3800 mark post-US macro releases.
The pair built on this week's goodish rebound from the 100-day SMA support, around the 1.3670-65 region and gained some positive traction for the fourth consecutive session on Thursday. However, a modest US dollar rebound from four-week lows kept a lid on any further gains for the GBP/USD pair.
The intraday USD uptick lacked any obvious fundamental catalyst and remained capped amid the ongoing decline in the US Treasury bond yields. Even the incoming positive economic data failed to impress the USD bulls as investors seem convinced that the Fed will keep interest rates low for a longer period.
Data published this Thursday showed that Retail Sales surged by 9.8% in March as against 5.9% growth anticipated. Adding to this, sales excluding autos, the closely watched Retail Sales Control Group, regional manufacturing indices and Jobless Claims all surpassed consensus estimates.
Meanwhile, the muted market reaction clearly indicates that investors have started looking through the headline-grabbing numbers as transitory. This, in turn, suggests that the path of least resistance for the greenback remains downside, supporting prospects for some appreciating move for the GBP/USD pair.
That said, the upside seems limited amid concerns that a link between the AstraZeneca COVID-19 vaccine and a rare blood clot could delay the UK government's plan to reopen the economy. This makes it prudent to wait for some strong follow-through buying before placing fresh bullish bets.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.