The upside momentum around the sterling remains unabated today, although GBP/USD still can’t break above 1.4500 on a sustainable basis.
GBP/USD bolstered by USD weakness
Spot has advanced to fresh 4-week highs just above the 1.4500 handle, although the bullish attempt now seems to have lost some momentum, returning to the mid-1.4400s.
The increasing weakness around the greenback post-FOMC meeting has been propping up the important up move in spot, later supported by the steady stance from the BoE at today’s meeting, which it did not sound as dovish as markets were expecting.
GBP/USD levels to consider
As of writing the pair is up 1.42% at 1.4463 facing the next hurdle at 1.4502 (high Mar.17) ahead of 1.4670 (high Feb.4) and finally 1.4948 (high Dec.25 2015). On the other hand, a breakdown of 1.4249 (50% Fibo of 1.4670-1.3833) would target 1.4161 (20-day sma) en route to 1.4028 (23.6% Fibo of 1.4670-1.3833).
(Market News Provided by FXstreet)