GBP/USD clings to gains, comfortably above 1.1800 mark
- GBP/USD gained traction for the second straight session on Wednesday.
- Some follow-through USD weakness continued driving the pair higher.
- The UK CPI for February did little to provide any meaningful impetus.
The GBP/USD pair held steady near session tops, just below mid-1.1800s and moved little post-UK consumer inflation figures.
The pair added to the overnight strong gains and gained traction for the second consecutive session on Wednesday – also marking the third day of a positive move in the previous four – amid a broad-based US dollar weakness.
The Fed's unprecedented QE program to buy unlimited amounts of Treasury bonds and mortgage-backed securities continued weighing on the US dollar, which eventually turned out to be one of the key factors driving the pair higher.
Adding to the optimism over the Fed's open-ended and unlimited QE, the US Senate finally reached an agreement on a stimulus package to offset any negative impact from the coronavirus pandemic on the US economy.
Apart from the offered tone surrounding the greenback, the uptick lacked any major catalyst and seemed rather unaffected by the release of the latest consumer inflation figures from the UK, showing that the headline CPI eased to 1.7% YoY rate in February.
Moving ahead, Wednesday's US economic docket – highlighting the release of Durable Goods Orders data for February – might also fail to provide any meaningful impetus, leaving the pair at the mercy of the USD price dynamics.
Technical levels to watch