GBP/USD hits fresh session tops, above mid-1.4100s

   •  GBP benefits from today’s wage growth data.
   •  Relentless USD drop supportive of the upsurge.

The GBP/USD pair built on its strong up-move further beyond the 1.4100 handle and has now jumped to fresh session tops, marginally above mid-1.4100s.

Against the backdrop of growing optimism over a favourable divorce deal with the EU, the British Pound got an additional boost after data released from the UK showed wage growth rose to a near one-year high. A stronger than expected figure was now seen encouraging BOE policymakers to think of raising interest rate again and underpinned the domestic currency. 

Adding to this, the US Dollar sell-off accelerated to fresh three year lows after the US Treasury Secretary Steven Mnuchin welcomed its recent weakness and remained supportive of the pair's strong up-move to the highest level since the 2016 historic Brexit vote.

Meanwhile, the near-term overstretched conditions now seem to suggest some sort of consolidation or a modest pullback from higher levels ahead of this week's other important macro releases from the UK and the US. 

In the meantime, today's US economic docket, featuring the release of flash PMI prints and existing home sales data, might help traders grab some short-term trading opportunities.

Technical outlook

Mario Blascak, European Chief Analyst at FXStreet writes: “The combination with the technical oscillators like the Relative Strength Index and the Slow Stochastics in the Overbought territory indicates that once the correction will materialize, the $1.4000 is unlikely to be a major support as well leaving the last technical level of $1.3850 in place to become an ultimate corrective target. Especially with the Relative Strength Index rising to the highest level since September 2012.”