GBP/USD hits a high of 1.4211 before holding near 1.4200 currently

GBP/USD D1 25-05

The 1.4200 level is a key one to watch on the daily chart before getting to resistance from the 24 February high @ 1.4241 for the pair.

Right now, buyers are trying to secure a break above the figure level as they capitalise on a weaker dollar in trading so far on the session.

The greenback is coming under pressure after USD/CHF fell through 6.40 to its weakest level since 2018. With a lack of pushback by China, that could set the tone for further dollar weakness especially if there are technical breaks elsewhere too.

The other one to watch in that regard is EUR/USD as it looks to hold above the 25 February high of 1.2243 before trying to take a shot at the January highs just above 1.2300.

This is also helping to see GBP/USD try and test waters above 1.4200 again for now.

While the dollar side of the equation is arguably the driver here, the pound itself may find it hard to extend the momentum given that plenty of the good news on the economy and the BOE has already been somewhat priced in.

That said, it will be tough to argue against a pure technical break above the 24 February high of 1.4241 and the play would be to go with that break if it happens. However, just be mindful that the 2018 highs are close by around the 1.4345-76 region.