GBP / USD is holding on to gains close to 1.3800, unaffected by upbeat US macro data.

• GBP / USD gained positive traction for the fourth consecutive session on Thursday.
• A modest rally in the USD from multi-week lows limited the pair’s rise.
• The mostly upbeat US economic releases did little to provide significant boost.

The pair GBP/USD it maintained its intraday gains, although it lacked subsequent purchases and remained capped below 1.3800 after the US macroeconomic data.

The pair built on this week’s good bounce from the 100-day SMA support around the 1.3670-65 region and gained some positive traction for the fourth consecutive session on Thursday. However, a modest rally in the US dollar from four-week lows kept any further gains for GBP / USD limited.

The intraday rally in the USD lacked an obvious fundamental catalyst and remained limited amid the ongoing decline in US Treasury yields even the incoming positive economic data failed to impress USD bulls, as investors seem convinced that the Fed will keep interest rates low for a longer period.

Data released Thursday showed that retail sales rose 9.8% in March compared to the forecast growth of 5.9%. Added to this, sales excluding automobiles, the Retail Control Group, regional manufacturing indices, and Unemployment Claims all beat consensus estimates.

Meanwhile, the quiet market reaction clearly indicates that investors have begun to view the headline figures as transitory. This, in turn, suggests that the path of least resistance for the dollar remains to the downside, supporting the prospects for some appreciation movement for the GBP / USD pair.

That said, the lead seems limited amid concerns that a link between the AstraZeneca COVID-19 vaccine and a rare blood clot could delay the UK government’s plan to reopen the economy. This makes it wise to wait for some solid follow-up buys before making any new bullish bets.

Technical levels