- Sustained USD selling pushed GBP/USD to fresh multi-year tops on Friday.
- Bulls largely shrugged off the disappointing release of UK Retail Sales data.
- A goodish pickup in the US bond yields did little to impress the USD bulls.
The GBP/USD pair refreshed 34-month tops in the last hour, albeit seemed struggling to capitalize on the move beyond the key 1.4000 psychological mark. GBP/USD reaching the highest levels in 34 months. The bulls shrug off dismal UK retail sales data amid broad-based US dollar weakness. UK Markit's preliminary PMIs came out significantly above expectations.
Following a brief consolidation through the first half of the trading action on Friday, the pair managed to regain some positive traction and seemed unaffected by disappointing UK Retail Sales data. A broad-based was seen as a key factor that provided a modest lift to the GBP/USD pair. The Relative Strength Index on the four-hour chart is nearly 70 – on the verge of overbought conditions and indicating that a breakout could be followed by a pullback.
All in all, there is room for more gains, yet it may hit short-term roadblocks. Above 1.40, the next lines to watch date to 2018 and these include 1.4110, 1.42 and 1.4240.
Support awaits at 1.3950, the previous 2021 peak any correction testing this level is a buy opportunity , followed by 1.39, then by 1.3880, and finally 1.3830.
