- GBP / USD advanced to a new daily high above 1.4200.
- The US dollar index turned south after remaining quiet around 90.00.
- The focus shifts to the release of high-level macroeconomic data from the US on Tuesday.
The pair GBP/USD it spent the first half of the day fluctuating in a tight range around 1.4180, but gained traction during US business hours. At time of writing, the pair is trading at a fresh daily high of 1.4118, increasing 0.22% on the day.
In the absence of important fundamental drivers and release of macroeconomic data, month-end flows appear to be causing the dollar to weaken against its main rivals. The US Dollar Index is currently losing 0.22% on the day at 89.86. Additionally, weak trading conditions due to the Memorial Day holiday in the US appear to be allowing major pairs to make sharp moves.
No data will be published on the UK economic calendar on Tuesday. Later in the day, the US ISM Manufacturing PMI, which is expected to improve to 61 in May from 60.7 in April, will be seen as a new boost.
Perspectiva GBP/USD
UOB Group currency strategists think GBP / USD could see additional gains if it manages to clear resistance at 1.4235.
“The GBP has to close above 1.4235 before a sustained advance can be expected,” the strategists noted. “On the downside, a breakout of 1.4110 would indicate that the bullish risk has dissipated. Looking ahead, the next resistance levels above 1.4235 are at 1.4265 and 1.4290.”
Additional levels
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