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  • Pound remains in positive territory even as the US dollar attempts a recovery.
  • GBP/USD up for the third consecutive day, eyes resistance at 1.3985/1.4000.

The GBP/USD is rising for the third consecutive day on Thursday, supported by a weaker US dollar across the board. Cable rose to 1.3977, hitting the highest level in six days and then pulled back, finding support at 1.3935.

Stocks in Wall Street are rising again, with the Dow Jones up by 0.62% at record highs and the Nasdaq 1.88%. The improvement in risk sentiment also weakened the greenback. Over the last hours, the rebound to the upside in US yields helped remove the negative pressure of the dollar.

Economy data in the US came in better-than-expected with a decline in initial jobless claims to the lowest level since November; continuing claims fell for the eighth consecutive week to the lowest in almost a year. Attention now turns to the 30-year debt auction results.

GBP/USD with resistance at 1.3985

Cable is moving with a bullish bias in the very short-term. The upside faces a strong resistance area between 1.3985 and 1.4000. If the pound manages to surpass the mentioned area, it would be set for an extension, with the next resistance seen at 1.4035. On the flip side, at 1.3910 is the immediate support, followed by 1.3860. A slide below 1.3860 would expose the weekly low at 1.3798 and 1.3775.

Technical levels