GBP/USD pushes higher, retargets 1.3000

The selling pressure in the Greenback now picks up extra pace and favours the continuation of the upside impulse in GBP/USD, which shifts its focus to the key 1.3000 threshold.

GBP/USD remains within the upper half of the ascending regression channel and the Relative Strength Index (RSI) indicator on the 4-hour chart holds slightly above 50, reflecting a lack of seller interest.

On the downside, 1.2920 (50-period Simple Moving Average (SMA), mid-point of the ascending channel) aligns as immediate support before 1.2870 (static level) and 1.2790-1.2780 (100-period SMA, lower limit of the ascending channel).

Looking north, resistance could be spotted at 1.2970 (static level), 1.3000 (static level, round level) and 1.3060 (upper limit of the ascending channel).

Fundamental Overview

During the European trading hours, US stock index futures lose about 0.5% on the day, pointing to a cautious market stance. Nevertheless, GBP/USD's downside remains supported for now, with investors refraining from taking large positions in anticipation of this week's key macroeconomic events.

On Wednesday, the Federal Reserve (Fed) will release the interest rate decision and publish the revised Summary of Economic Projections (SEP), the so-called dot plot. On Thursday, the Bank of England (BoE) is expected to maintain its monetary policy settings following the March meeting.

Ahead of the Fed and the BoE announcements, the US economic calendar will feature Retail Sales data for February on Monday. Investors expect Retail Sales to grow by 0.7% on a monthly basis, following the 0.9% contraction reported in January. A big negative surprise in this data could weigh on the USD with the immediate reaction and help GBP/USD edge higher. A bearish action in Wall Street, however, could support the USD later in the day and make it difficult for the pair to gather bullish momentum.