GBP/USD rises to test daily highs

By FXStreet FXStreet (Córdoba) – A weak US dollar boosted the GBP/USD during the American session. After bottoming at 1.4377, it rebounded and rose back above 1.4400. Recently as US stocks erased gains and while crude oil dropped to test $30.00 a barrel (WTI), GBP/USD gained momentum and climbed toward daily highs.

Cable reached 1.4467, level located just a few pips below daily highs that lie at 1.4475. A break of today’s highs could open the doors for further gains toward 1.4500, where a short-term downtrend line stands; if it breaks higher the correction could extend to 1.4560 (2015 low / Jan 12 high).

While it remains below the key 1.4500 area, the short-term bias will be to the downside, in line with the dominant trend.

GBP/USD: No new lows

On the positive side for the pair, the pound for the first time since December 30 it did not reached fresh cycle lows against the US dollar and is also posting for the second time in three weeks a daily gain. Despite the two positive facts, still remains weak and yesterday at 1.4440/50 posted the lowest daily close since May 2010.
For more information, read our latest forex news. …read more

Source:: FX Street