GBP/USD rises toward last week highs

GBP/USD broke above 1.3120 and rose to 1.3155, hitting a fresh daily high. The pair currently trades at 1.3140/45, up 0.50% for the day. A weak US dollar boosted the pair toward last week highs.

Recovers from Friday’s decline

On Friday cable dropped from 1.3130 to 1.3020. It opened the week around 1.3060 and dropped to test Friday’s lows but managed to hold on top and turned to the upside, gaining bullish momentum above 1.3080. During the American session extended gains and approached last week highs that lie at 1.3184.

Now it is trading at the same level it opened on Friday. From a technical perspective, a consolidation on top of 1.3070 could be supportive of a move higher.

Levels to watch

To the upside, resistance levels might be located at 1.3155 (daily high), 1.3170/75 (Aug 5 high) and 1.3200 (psychological). On the opposite direction, support could be seen at 1.3120 (previous resistance), 1.3080/85 (Aug 17 high) and 1.3020 (Aug 19 low).