GBP/USD clings to strong gains near 2-week tops

   •  USD selling remains unabated despite upbeat PPI and easing trade war fears.
   •  McCafferty's hawkish comments underpinned GBP and support the up-move.

The GBP/USD pair held on to its strong gains through the early NA session and now seems to have entered a bullish consolidation phase, above mid-1.4100s.

Despite hotter-than-expected US PPI print and easing trade war fears, the US Dollar has failed to find any buyers and remained supportive of the strong bid tone, for the third consecutive session, surrounding the major. 

   •  US Dollar remains vulnerable around 89.60

The British Pound was further underpinned by the BoE policymaker 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.

   •  GBP to take cues from the BoE - Rabobank

This coupled with a follow-through technical buying, especially after yesterday's bullish break through the 1.4100 handle and a subsequent up-move above the 1.4120 supply zone, further collaborated to the pair's up-move to near 2-week tops. 

Moving ahead, Wednesday's economic docket - featuring the release of UK manufacturing production data, followed by the latest US consumer inflation figures and FOMC meeting minutes, would now be looked upon for some fresh impetus.

Technical outlook

Valeria Bednarik, FXStreet's own American Chief Analyst writes: “In the 4 hours chart, the Momentum lost upward strength but holds within overbought readings, while the RSI keeps heading north, currently at 72. In the same chart, the 20 SMA gains upward traction below the current level, while the price extends above the 23.6% retracement of the March rally, all of which supports the ongoing upward move. An immediate resistance comes at 1.4199, the high achieved on March 28th, with a break above it favoring a continued advance up to 1.4244, March high.”