GBP/USD extends rally to near 1.4600

By FXStreet FXStreet (Córdoba) – GBP/USD broke above the 38.2% retracement of its December-January fall and reached fresh 3-week highs as the greenback continues to weaken across the board.

GBP/USD resumed its recovery on Wednesday and it has climbed more than 200 pips to a high of 1.4595 before losing momentum. At time of writing, the pair is trading at 1.4550, still up 1.0% on the day.

Dollar sell-off was ignited by Fed’s Dudley dovish comments, which offset a positive US ADP report. Later, a disappointing ISM services PMI (53.5 vs 55.1 exp) added to USD woes.

GBP/USD levels to watch

In terms of technical levels, next resistances could be faced at 1.4600 (psychological level), 1.4657 (50.0% Fibo retracement of 1.5239-1.4078) and 1.4722 (50-day SMA). On the flip side, supports are seen at 1.4354 (20-day SMA), 1.4330/25 (10-day SMA/Feb 2 low) and1.4227 (Feb 1 low).
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Source:: FX Street