GBP/USD side-lined near daily highs around 1.2920

The GBP/USD pair maintained its bullish momentum in the US afternoon and extended its gains to a fresh daily high at 1.2924. The pair has gone into a consolidation phase and has been trading in a very tight channel around 1.2920 in the past couple of hours. As of writing, the pair was at 1.2923, up 0.45% on the day.

The greenback weakness is seen as the main catalyst behind the pair's rise on Thursday. After failing to hold above the 99 handle, the US Dollar Index came under pressure and fell towards its lowest level since early November. At the moment, the index seems calm around 98.60 but remains dangerously close to that mentioned level of 98.56.

Today's positive macro data, rising U.S. T-bond yields, and the Republicans' success to get enough support to push the healthcare bill through the House failed to provide any support for the greenback. Tomorrow's nonfarm payroll report, which is expected to show a strong rebound in April, could be the index's next opportunity to catch a break from the bears.

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Technical outlook

The pair would need to clear the 1.2955/60 (Apr. 28 high/Oct. 4 high) area before attempting a test of 1.30 (psychological level) and 1.3055 (Sept. 28 high). On the flip side, supports align at 1.2860 (May 3 low), 1.2830 (daily low) and finally 1.2775 (20-DMA).