- The pound remains in positive territory even as the US dollar tries to rally.
- GBP / USD rises for the third day in a row, focus is on resistance at 1.3985 / 1.4000.
The GBP/USD it is rising for the third day in a row on Thursday, backed by a weaker US dollar across the board. The pound rose to 1.3977, reaching the highest level in six days and then retraced, finding support at 1.3935.
Wall Street stocks are rising again, with the Dow Jones climbing 0.62% to all-time highs and the Nasdaq 1.88%. The improvement in risk sentiment also weakened the dollar. Over the past few hours, the bullish rally in US yields helped take the negative pressure off the dollar.
Economic data in the US was better than expected with initial jobless claims declining to the lowest level since November; ongoing claims fell for the eighth consecutive week to the lowest level in nearly a year. Now the focus is on the results of the 30-year debt auction.
GBP / USD with resistance at 1.3985
The pound is moving with a bullish bias in the very short term. The upside faces a strong resistance zone between 1.3985 and 1.4000. If the pound manages to break above the mentioned area, it would settle for an extension, with the next resistance seen at 1.4035. On the other hand, at 1.3910 is immediate support, followed by 1.3860. A drop below 1.3860 would expose the weekly low at 1.3798 and 1.3775.
Technical levels
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