GBP/USD clings to strong gains near 1.31 handle

The GBP/USD pair continued gaining traction through early NA session and touched fresh one-month high, around the 1.3100 handle.

The post-ECB rally in the EUR/USD major, coupled with today's disappointing weekly jobless claims data from the US dragged the key US Dollar Index to YTD lows and has been one of the key factors driving the pair higher.

With today’s strong up-move, the pair has now gained around 200-pips from the vicinity of 1.2900 handle touched on Tuesday and might have also taken along some big stops placed around the 1.3030-35 region.

Meanwhile, the USD fall might have been overdone in the near-term and hence, a modest retracement, primarily led by some profit taking, cannot be ruled out. 

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Technical levels to watch

The ongoing momentum seems strong enough to continue lifting the pair towards 1.3130-35 horizontal resistance before eventually darting towards the 1.3200 handle.

On the flip side, retracement below 1.3070 level now seems to find fresh buying interest near the 1.3035-30 region and any weakness might now be limited at the key 1.30 psychological mark.