The buying interest around the sterling is now picking up further pace today, lifting GBP/USD to test the 1.4480 area, or daily highs.
GBP/USD rebounds from sub-1.4400
The pair is recovering part of yesterday’s sharp pullback to the mid-1.4300s, although the upside seems to have run out of steam in the vicinity of 1.4500 the figure backed by a generalized offered tone around the US dollar and some upbeat comments by BoE’s Cunliffe.
In the data space, UK’s trade deficit shrunk to £9.91 billion during December, bettering previous estimates. In the US docket, the Business Optimism index tracked by NFIB has come in short of expectations at 93.9 in January, ahead of Wholesale Inventories and the API’s weekly report.
GBP/USD levels to consider
As of writing the pair is up 0.17% at 1.4452 and a breakout of 1.4670 (high Feb.4) would aim for 1.4694 (55-day sma) and finally 1.4796 (61.8% Fibo of 1.5240-1.4079). On the downside, the next support aligns at 1.4353 (23.6% Fibo of 1.5240-1.4079) followed by 1.4147 (low Jan.29) and then 1.4079 (low Jan.20).
(Market News Provided by FXstreet)