GBP/USD: Bulls back in control, re-takes 1.3400
- Will it regain 1.34 handle?
- USD weakness, UK GDP underpin.
- The UK high street lending, US datasets eyed.
The bulls are back in control amid broad-based US dollar weakness, now pushing GBP/USD pair further into the green zone, with the 1.34 handle just a whisker away.
GBP/USD trades above all major DMAs
Holiday-thinned light trading provides extra legs to the rebound in GBP/USD pair, while persistent weakness seen around the US dollar across its main peers, also collaborates to the renewed uptick seen in the spot. The USD index meanders near four-week lows of 92.69, down -0.13% on the day.
Moreover, risk-on rally seen in the European equities, with the resource-heavy FTSE 100 index benefiting from the recent gains in oil prices, further boosts the sentiment around the risk currency GBP.
Furthermore, upbeat UK Q3 GDP revision continues to underpin the domestic currency, adding to the fresh gains seen in Cable. On an annualized basis, the UK economy’s growth rate accelerated to 1.7% in Q3, beating the consensus forecasts of 1.5% and 1.9% last (revised up from 1.5%).
Meanwhile, the pair will get influenced by the USD price-action and risk trends ahead of the UK Finance mortgage approvals data, which is expected to have virtually no impact on the prices. However, the US CB consumer confidence and pending home sales will drive the USD moves later on Wednesday.
GBP/USD Forecast 2018: Sterling seen rangebound falling prey to Brexit mood swings
GBP/USD Technical Levels
According to Valeria Bednarik, Chief Analyst at FXStreet, “According to Valeria Bednarik, Chief Analyst at FXStreet, “From a technical point of view, and in the short term, the pair maintains a neutral stance, as the price remains attached to a horizontal 20 SMA, although holding above a 200 EMA, and with technical indicators aiming marginally higher above their mid-lines, rather limiting chances of a downward movement than suggesting some additional gains ahead. Solid UK data is being offset by Brexit jitters, a situation that will likely persist until the next round of negotiations offers fresh clues. Support levels: 1.3340 1.3300 1.3260. Resistance levels: 1.3385 1.3420 1.3465.”