FXStreet (Mumbai) – The GBP/USD pair extended gains to a high of 1.5224 after flirting with the trend line support in Asia and Europe.
Trades at three-week high
At 1.5224, the pair trades at its highest since November 20th. The USD is being offered across the board ahead of the weekend, although the US retail sales; with the headline figure at 4-month high and a better-than-expected control group figure (included in GDP calculations); tilted to a positive side.
The USD weakness appears somewhat surprising since we are just four days away from the FOMC rate decision, where the bank is expected to announce a rate hike. It remains to be seen if the pair manages to latch on to gains above 1.52 ahead of the weekly closing or extends gains to a major resistance at 1.5248 (50% of Apr-Jun rally+38.2% of 1.5819-1.4895).
GBP/USD Technical Levels
The immediate resistance is located at 1.5248 (50% of Apr-Jun rally+38.2% of 1.5819-1.4895), above which the pair could target 1.5310 (Nov 20 high). On the other hand, a break below 1.52 would expose hourly 50-MA at 1.5168.
(Market News Provided by FXstreet)