GBP/USD flirts with 1.42 resistance after a three day-run

• UK manufacturing and industrial production data are scheduled on Wednesday at 8:30 GMT.
• The US Consumer Price Index and the FOMC Minutes’reports are slated on Wednesday at 12:30 GMT and 18:00 GMT respectively.  

The GBP/USD is trading at around 1.4164 up 0.23% on Tuesday as the US Dollar is on the backfoot and the GBP was underpinned by hawkish Bank of England policymakers comments. 

Coming up next in the UK is the manufacturing and industrial production data at 8:30 GMT on Wednesday, followed by the US inflation data at 12:30 GMT and the FOMC Minutes’ report at 18:00 GMT. 

Earlier, in the day the British Pound was supported by the Bank of England’ Ian McCafferty's hawkish comments, saying that “the UK Central Bank should not delay raising interest rates again amid the possibility of faster pay rises and the recent strong pick-up in the world economy.” as reported by FXStreet's own Haresh Menghani.  

Meanwhile, the US Producer Price Index (PPI) came in better-than-expected earlier in the day. However, US Dollar bulls failed to lift the greenback on the data. Even the positive sentiment on Wall Street stemmed from China’s President pushing free trade, did nothing to revive the US Dollar which is currently trading below $89.70.    

GBP/USD weekly chart

The GBP/USD is currently evolving in a bull channel. Resistance is priced in at 1.4245 prior swing high and 200-period simple moving average. 

GBP/USD daily chart

On the daily time frame, bulls found support at the 50-period simple moving average three days ago. 

GBP/USD 4-hour chart

The market found resistance at 1.4189. The next key resistances ahead are seen at the 1.42 figure and 1.4245 swing high. Supports are seen at 1.4120 and 1.4118 swing lows. The momentum is bullish and bulls will need to break and close above the 1.4189 resistance in order to claim higher prices.