GBP/USD rises further above 1.3820 to a new post-referendum high

• US Dollar recovery lost momentum. 
• Pound reached fresh highs across the board. 
• GBP/USD finds resistance near 1.3840.

The GBP/USD pair broke above 1.3820 and jumped to 1.3844 hitting a fresh post-Brexit referendum high. The move came as the US Dollar weakened in the market as it continues to be unable to make a strong correction. 

The pound started to rally ahead of the London fix. Cable jumped from 1.3795 to 1.3844. Afterwards pulled back modestly and it was trading at 1.3825, headed toward the highest close since June 2016. 

The US Dollar Index moved off daily highs. It was trading at 90.50, up just 0.1% for the day; still under pressure and near multi-year lows. 

Technical levels to watch

To the upside, the area around 1.3835/40 continues to be a key technical level: a consolidation on top could signal more gains ahead while failure here might point toward some consolidation. On top of that level, resistance might lie at 1.3870 followed by 1.3900. 

On the downside, support levels might be seen at 1.3805 (Jan 16 high), 1.3755/60 (Jan 17 low) and 1.3720.