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GBP/USD Trades At Fresh Weekly Highs And Could Extend Gains In The Near-Term

·1 min read

GBP/USD Current price: 1.3901

  • The British pound keeps finding modest support in the UK’s improving covid situation.

  • Federal Reserve Chairman Jerome Powell poured cool water on tapering speculation.

  • GBP/USD trades at fresh weekly highs and could extend gains in the near-term.

The GBP/USD pair reverted an intraday dip to 1.3844 and posted fresh weekly highs just above the 1.3900 figure after the Fed’s announcement. The greenback met some demand as the Fed’s statement was optimistic, easing afterwards as Chair Jerome Powell poured cool water on tapering, noting that they are “not there” when referring to the usual substantial further progress towards Fed’s goals.

The UK reported over 27,700 new coronavirus contagions, the first increase in eight days but still well below the 44K reported a week ago. The country has lifted quarantine requirements from fully vaccinated visitors from the EU and the US. Meanwhile, the UK published July Nationwide Housing Prices, which unexpectedly dropped 0.5% MoM. On Friday, it will be the turn of June money figures, including Mortgage Approvals.

GBP/USD short-term technical outlook

The GBP/USD pair heads into the Asian opening, trading a handful of pips below its post-Fed high at 1.3911, and chances are skewed to the upside. The pair has spent the day above all of its moving averages, meeting buyers on approaches to the 200 SMA. Meanwhile, the 20 SMA heads north above the 100 SMA, both below the larger one. Technical indicators are heading modestly higher near overbought readings after spending the day consolidating nearby.

Support levels: 1.3860 1.3806 1.3760

Resistance levels: 1.3930 1.3980 1.4025

Image Sourced from Pixabay

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