GBP/USD traded just below the 1.3400 mark during the Asian session on Thursday, close to its highest level since September 16. The US dollar held near a nearly three-week low set on Tuesday as US bond yields declined.
Sterling drew support from expectations of a Bank of England rate hike in November. UK consumer price inflation rose to an 11-month high in September, keeping pressure on the central bank to act.
Geopolitics and rate bets
Reports that the US and Israel have drawn up plans for possible new strikes against Iran after the US midterm elections kept geopolitical risk in focus.
Those worries feed into bets on the Federal Reserve. CME FedWatch currently prices a 90 percent probability of a Fed rate hike in December.
Levels in view
Immediate resistance sits at 1.3404, the 50 percent Fibonacci retracement. Support is seen at 1.3341, the 38.2 percent retracement, and at 1.3389, the 100-day simple moving average.
Above the pair, 1.3467 and 1.3557 mark the 61.8 and 78.6 percent retracements. By our market data, as of 01:30 GMT, GBP/USD stood at $1.3395, near its 31-day high.
Related: Pound holds near $1.3250 as US yields ease from highs · Australian dollar rises as US yields pull back and Fed seen holding
Data: Swissquote
