• A modest USD weakness helps gain some positive traction.
• The up-move lacked strong conviction amid a subdued trading action.
• Investors look forward to next week’s macro releases for fresh impetus.
The GBP/USD pair extended its steady climb on Friday and is currently placed at the top end of its daily trading range, around mid-1.4000s.
The pair snapped three consecutive days of losing streak and gained some positive traction from closer to the key 1.40 psychological mark. A modest US Dollar weakness, amid a subdued/range-bound trading session, was seen as one of the key factors driving the pair higher.
Apart from a weaker tone surrounding the greenback, the up-move lacked any obvious fundamental trigger and thus, seemed struggling to gain any follow-through traction.
Investors now look forward to next week’s important macro releases, scheduled at the start of a new month and which would help determine the pair’s next leg of directional move.
Technical levels to watch
Immediate resistance is pegged near 1.4075 level, above which the pair is likely to aim towards surpassing the 1.4100 handle and head towards testing the 1.4135-40 supply zone. On the flip side, the 1.4020 area now seems to protect the immediate downside, which if broken might prompt some fresh selling and continue dragging the pair towards 1.3965-60 horizontal support.
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