GBP/USD eyes more gains as it breaks above 1.3550

• US Dollar retreats   despite upbeat US economic data, erases NFP gains.
• Cable breaks intraday range and rises above 1.3550 to 1-week highs.

After trading hours sideways between 1.3305 and 1.3340, the GBP/USD broke to the upside and rose above 1.3550 hitting the highest level in a week. The pair peaked at 1.3358 and it was holding above 1.3550 with the bullish tone intact. Cable is rising for the third-day in-a-row and is about to post the best weekly results since early April.

The pound extended gains versus the greenback during Friday’s American session, despite upbeat US economic data. Earlier today, it was the employment report and more recently the ISM Manufacturing that came in at 58.7 above the 58.1 expected; the price component of the index rose to 79.5 against estimates of a modest decline. The US dollar spiked after the data but then resumed the correction.

The pound is among the top performers of the day. It also received support from the slide of EUR/GBP that broke below 0.8750.

GBP/USD short-term levels

If the pair extends its gains, resistance levels might be seen at 1.3375, 1.3410 and 1.3450. On the flip side, support could now be located at 1.3345 (May 31 high), 1.3305 (lower limit of recent trading range) and 1.3250/55 (Jun 1 low).