GBP/USD Pressures Fresh Monthly Highs Could Advance Towards 1.4200

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GBP/USD Current price: 1.3967

• The UK reported 31,117 new coronavirus cases in the last 24 hours.
• Broad dollar’s weakness and a better market mood boosted the pair.
• GBP/USD pressures fresh monthly highs could advance towards 1.4200.

The GBP/USD pair extended its weekly rally to 1.3981, its highest in a month, underpinned by the broad dollar’s weakness. The UK macroeconomic calendar had nothing to add to the pound’s movements, while all seems quiet on the Brexit front. However, new coronavirus cases have risen for the second day in a row, rising to 31,117 in the last 24 hours. The country also reported 85 new deaths.

Meanwhile, the government is threatening with a domestic vaccine passport, aiming to get young people fully vaccinated. The UK will not publish macroeconomic data on Friday.

GBP/USD short-term technical outlook

The GBP/USD pair maintains its positive tone, trading near its daily high. The pair is overbought in the near-term, but it could keep rallying. The 4-hour chart shows that the 20 SMA heads sharply higher, retaining its strength after crossing above the longer ones. The Momentum indicator eases from daily highs while the RSI indicator consolidates around 73. The pair may meet some selling interest around the 1.4000 level, although a clear break above it could anticipate a run towards the 1.4200 price zone.

Support levels: 1.3945 1.3900 1.3860

Resistance levels: 1.4000 1.4045 1.4090

Image by PublicDomainPictures from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.