GBP/USD approaches 1.4200 as US dollar accelerates the decline
- Pound prints fresh highs versus US dollar and euro.
- US dollar under pressure, DXY drops toward monthly lows.
The GBP/USD rose further and climbed to 1.4182, reaching a fresh daily low. Cable is erasing Wednesday’s losses and is approaching the 1.4200 supported by a decline of the US dollar across the board and risk appetite.
Looking again at 1.4200
Equity prices in Wall Street reach fresh highs. The Dow Jones rises by 0.81% and the Nasdaq by 1.72%. The improvement in risk appetite weighed on the US dollar. The DXY fell to 89.78, and it remains near the low, down 0.42% for the day, looking at May’s lows.
Treasuries are rising considerably, also affecting the greenback. The 10-year yield drops 2.45%, and it stands at 1.63%. On Wednesday, after the FOMC minutes, it approached 1.70%.
The GBP/USD erased practically all Wednesday’s losses. The decline from the recent high found support around the 1.4100 area. Above 1.4180, the next resistance is the 1.4200 zone, the last defense toward the May high of 1.4220. The positive momentum will likely hold while above 1.4150/55 (20-SMA in 4-hour chart). A slide below would leave the pound vulnerable to another test of 1.4100.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
