GBP/USD renews multi-week highs above 1.3750, eyes on US data

• GBP/USD preserves its bullish momentum ahead of the weekend.
• Upbeat market mood seems to be providing a boost to GBP/USD.
• US Dollar Index stays below 94.00 ahead of September Retail Sales data.

After posting small daily gains on Thursday, the GBP/USD pair regathered bullish momentum in the early trading hours of the European session on Friday and reached its strongest level since September 17 at 1.3758. As of writing, the pair was up 0.6% on the day at 1.3755.

The risk-positive market environment ahead of the weekend seems to be helping GBP/USD push higher. Reflecting the upbeat market mood, the UK's FTSE Index is up 0.3% on the day and the US stocks futures are up between 0.3% and 0.45% ahead of Wall Street's opening bell.

On the other hand, the US Dollar Index (DXY) stays in a consolidation phase below 94.00 as investors await the September Retail Sales report and the University of Michigan's advanced October Consumer Sentiment Index data. Nevertheless, the 2% recovery witnessed in the benchmark 10-year US T-bond yield seems to be helping the DXY limit its losses. 

US Michigan Consumer Sentiment September Preview: Happy consumer, happy economy?

Meanwhile, investors will keep a close eye on fresh Brexit developments. Maroš Šefčovič, European Commission Vice President, and David Frost, the British minister responsible for implementing the Brexit deal, will be meeting in Brussels on Friday to discuss the EU's proposal on the Northern Ireland protocol. 

Technical levels to watch for