GBP/USD accelerators and hits fresh highs near 1.3900.

• Cable approaches 1.3900 and trims Thursday’s losses.
• USD momentum eases as Wall Street soars and US yields rise.

GBP/USD gained momentum during the US session and climbed to 1.3887 hitting a fresh daily high. It was holding near the top and close to the 1.3900 handle, keeping a strong intraday bullish tone.

After a spike higher following the release of the US employment report, the greenback lost strength. The US Dollar Index is down for the day, hovering around 90.00, after dropping from 90.30 (1-week high). The US February report showed that the economy added 313K jobs, significantly above the 200K expected. The negative detail was wage growth data that rose just 0.1% (below expectations).

The pound on Friday continued to receive some support from the EUR/GBP decline. Also, it was unaffected by a report mentioning that UK officials don’t expect to have a Brexit deal until next January.

Levels to watch

GBP/USD moved closer to the 1.3900 handle. A consolidation on top of 1.3910 would more be a positive development from a technical perspective and could clear the way to more gains. Potential resistance levels might lie at 1.3950 and 1.4010. On the downside, immediate support might lie at 1.3850, followed by 1.3820 and 1.3770/80.