GBP/USD trims daily gains, holds in weekly range

• US Dollar recovers momentum and moves off lows..
• GBP/USD remains in weekly range near 1.3550

The GBP/USD failed again to break above 1.3600 and retreated back below 1.3550 amid a recovery of the US dollar across the board. Recently dropped to 1.3531 and it was hovering around 1.3540.

The greenback trimmed losses the board during the American session and extended gains against most of emerging market currencies. US Dollar Index Futures rose from 92.19 to 92.42 supported by a bounce in US yields that turned higher. Regarding data, the US Preliminary Consumer Sentiment Index (University of Michigan) for May came in at 98.8, slightly above the 98.5 expected by market analysts.

Cable is still modestly higher for the day but the momentum eased. It continues to move sideways as it has been the case since last week.

Technical levels

GBP/USD continues to move in a consolidation range between 1.3500 and 1.3600. Today it is headed toward the sixth daily close between 1.3515 and 1.3550.

A consolidation above the upper limited is likely to signal more gains ahead with potential targets at 1.3625/30 and 1.3660/70. On the flip side, if the pair breaks and holds below 1.3500, the bearish pressure could intensify. Support levels might lie at 1.3450/55, 1.3425 and 1.3380.