GBP/USD breaks above 1.4100 after Powell’s comments, fresh multi-year high


  • Pound gains momentum across the board during Powell’s presentations.
  • US dollar turns negative, stocks trim losses.

The GBP/USD rebounded sharply after the first comments from Jerome Powell and climbed to 1.4113, reaching the highest level since 2018. The move higher took place amid a decline of the US dollar.

Fed’s Powell mentioned that the economy is a long way from employment and inflation goals. He offered so fur no surprises in its semi-annual presentation at the Congress. The central bank continues to promise to maintain rates near zero for a long time until full employment and inflation exceeds 2% for some time.

The greenback turned negative after the first comments, and US stocks rebounded. Powell now is answering questions from lawmakers. The DXY slide from 90.25 back to the 90.00 area. US yields pulled back. The 10-year dropped from 1.38% to 1.34%, weakening the greenback.

The pound gained momentum not only versus the US dollar but also against the euro. EUR/GBP dropped below 0.8620, reaching a fresh one-year low. The pound's positive trend remains intact, supported by expectations the UK economy will be the first to fully reopen in Europe.

Technical levels

GBP/USD

Overview
Today last price 1.411
Today Daily Change 0.0049
Today Daily Change % 0.35
Today daily open 1.4061
 
Trends
Daily SMA20 1.38
Daily SMA50 1.3666
Daily SMA100 1.3412
Daily SMA200 1.3093
 
Levels
Previous Daily High 1.4086
Previous Daily Low 1.3981
Previous Weekly High 1.4036
Previous Weekly Low 1.383
Previous Monthly High 1.3759
Previous Monthly Low 1.3451
Daily Fibonacci 38.2% 1.4046
Daily Fibonacci 61.8% 1.4021
Daily Pivot Point S1 1.3999
Daily Pivot Point S2 1.3937
Daily Pivot Point S3 1.3893
Daily Pivot Point R1 1.4104
Daily Pivot Point R2 1.4148
Daily Pivot Point R3 1.421

 

 

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