GBP/USD climbs to monthly highs above 1.3000 as USD selloff continues

GBP/USD continues to push higher toward the weekend.
Upbeat market mood lifts US stocks, weighs on USD.
US Dollar Index remains under pressure, closes in on 93.00.

Eren Sengezer FXStreet

After spending the first half of the day moving sideways around 1.2950, the GBP/USD pair gained traction in the American session on Friday and climbed to its highest level since early September at 1.3015. As of writing, the pair was up 0.6% on the day at 1.3011.

Risk flows continue to hurt the USD

In the absence of fresh developments surrounding Brexit talks, the USD's market valuation continues to drive GBP/USD's movements.

Supported by stimulus hopes, Wall Street's main indexes opened in the positive territory for the third straight day on Friday. White House economic adviser Larry Kudlow said US President Donald Trump has approved a revised stimulus package that includes checks to individuals and an extension of the Paycheck Protection Program (PPP).

According to the Wall Street Journal, Treasury Secretary Steven Mnuchin will deliver the revised package, which will be worth around $1.8 trillion, to US House Speaker Nancy Pelosi later in the day.

Boosted by these developments, the S&P 500 and the Dow Jones Industrial Average are up 0.7% and 0.9%, respectively. Meanwhile, the US Dollar Index is down 0.52% on the day at 93.09.

Earlier in the day, the data published by the UK's Office for National Statistics (ONS) showed that Industrial Production in August contracted by 6.4% on a yearly basis. Additionally, the ONS reported that the Gross Domestic Product (GDP) grew by 2.1% on a monthly basis in August and missed the market expectation for an expansion of 4.6% by a wide margin. Nevertheless, these data releases had virtually no impact on the GBP's performance against its rivals.

Technical levels to watch for

GBP/USD

Overview
Today last price	1.3014
Today Daily Change	0.0077
Today Daily Change %	0.60
Today daily open	1.2937

Trends
Daily SMA20	1.2866
Daily SMA50	1.303
Daily SMA100	1.2794
Daily SMA200	1.2713

Levels
Previous Daily High	1.297
Previous Daily Low	1.2892
Previous Weekly High	1.2979
Previous Weekly Low	1.2747
Previous Monthly High	1.3482
Previous Monthly Low	1.2676
Daily Fibonacci 38.2%	1.294
Daily Fibonacci 61.8%	1.2922
Daily Pivot Point S1	1.2896
Daily Pivot Point S2	1.2854
Daily Pivot Point S3	1.2817
Daily Pivot Point R1	1.2975
Daily Pivot Point R2	1.3012
Daily Pivot Point R3	1.3054

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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