Following yesterday’s pullback, the GBP/USD pair is making another attempt to hold above the 1.30 handle on Friday. After touching its session high at 1.3028, the pair eased back a little and is now trading at 1.3015, up 0.6% on the day.
The latest bullish wave of the pair was fueled by the recent USD sell-off, which were triggered after the Federal Reserve Bank of St. Louis President James Bullard’s dovish comments in the early NA session. Bullard argued that the data since the last FOMC meeting have not been supportive of an aggressive monetary tightening as the inflation was lower-than-expected and the job growth was slowing down. Following Bullard’s remarks, the US Dollar Index fell to is session low at 97.14, and is now at 97.20, losing 0.6% on the day.
However, the pair could have a difficult time stretching its daily rise as there are no more macro data left and the volume is likely to thin out as we get closer to the end of the week. Nevertheless, with a weekly close above the 1.30 handle, the pair might be poised for further gains in the short-term.
With a decisive break above 1.3050 (May 18 high), the pair could aim for 1.3120 (Sept. 22 high) and 1.3200 (psychological level). On the flip side, supports could be seen at 1.3000 (psychological level), 1.2940 (daily low) and 1.2845 (May 12 low).