GBP/USD climbs to fresh weekly high, above 1.3600 mark amid renewed USD weakness

GBP/USD gained traction for the third successive day and climbed to a fresh weekly high.
Rising bets for additional BoE rate hikes in 2022 acted as a tailwind for the British pound.
Retreating US bond yields undermined the USD and remained supportive of the move up.

Haresh Menghani FXStreet

The GBP/USD pair climbed to a fresh weekly high during the first half of the European session and is now looking to build on the momentum further beyond the 1.3600 mark.

A combination of supporting factors assisted the GBP/USD pair to reverse an intraday dip to the 1.3555 area and move into positive territory for the third successive day on Thursday. As investors digest contradicting geopolitical headlines, the emergence of fresh US dollar selling acted as a tailwind for the pair. Apart from this, rising bets for additional interest rate hikes by the Bank of England underpinned the British pound and provided an additional lift to the major.

Russian media reported earlier today that the Ukrainian military forces fired mortars and grenades in four Luhansk People's Republic (LPR) localities, though Ukraine denied the accusations. Moreover, the Russian Ministry of Defense said that around 10 military convoys have left Crimea and released a video showing a logistics unit coming back to its home base after the completion of drills. This, in turn, capped the upside for the safe-haven USD and extended support to the GBP/USD pair.

Apart from this, less hawkish FOMC minutes released on Wednesday, along with retreating US Treasury bond yields further undermined the greenback. Policymakers agreed that it would be appropriate to remove policy accommodation at a faster pace than anticipated if inflation does not move down as they expect. The minutes, however, failed to reinforce expectations for a 50 bps rate hike in March, which have helped the greenback to gain some meaningful traction in the recent sessions.

It, however, remains to be seen if the GBP/USD pair is able to capitalize on the move or meets with a fresh supply at higher levels amid tensions over the Northern Ireland Protocol. In the absence of any major market-moving economic releases from the UK, the pair remains at the mercy of the USD price dynamics and geopolitical developments. Later during the early North American session, traders will take cues from the US economic docket, featuring the Philly Fed Manufacturing Index, Weekly Initial Jobless Claims and housing market data.

Technical levels to watch

GBP/USD

Overview
Today last price	1.3609
Today Daily Change	0.0016
Today Daily Change %	0.12
Today daily open	1.3593

Trends
Daily SMA20	1.3521
Daily SMA50	1.3481
Daily SMA100	1.3505
Daily SMA200	1.3694

Levels
Previous Daily High	1.3601
Previous Daily Low	1.3531
Previous Weekly High	1.3644
Previous Weekly Low	1.3491
Previous Monthly High	1.3749
Previous Monthly Low	1.3358
Daily Fibonacci 38.2%	1.3574
Daily Fibonacci 61.8%	1.3558
Daily Pivot Point S1	1.3549
Daily Pivot Point S2	1.3505
Daily Pivot Point S3	1.348
Daily Pivot Point R1	1.3619
Daily Pivot Point R2	1.3645
Daily Pivot Point R3	1.3688

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.