GBP/USD breaks above 1.4200 and extends gains

The pound rose across the board during the last hour and hit fresh highs versus the US dollar. GBP/USD broke above 1.4200 and climbed to 1.4236, hitting a fresh 2-day high. The pair is recovering after falling yesterday momentarily below 1.4100.

Back in positive territory for the week but...

The recent rally brought the price back above the level it had at the beginning of the week. Cable is about to the week with a gain of 110 pips.

On a wider perspective, it continues to consolidate below the 20-week moving average that stands at 1.4450 and above 1.4000.

Analysts from Lloyd Bank see supports re-tested in the coming sessions, with 1.4190/1.4205 pivot resistance. “A break of 1.40/1.3980 support is needed though, to open up a retest of the February lows. Medium term, we expect the market to continue to trade a range between 1.3850-1.35 support and 1.45-1.48 resistance. Should we see a breakdown through 1.35, then we have little in the way till meaningful support in the 1.2800 region.”