GBP/USD climbs to near 2-week tops, around 1.2480-85 supply zone

The GBP/USD pair continued scaling higher through the early North-American session and jumped to near two-week tops, closer to the 1.2480-85 supply zone.

The pair managed to gain some strong follow-through traction for the third consecutive session on Thursday and has now rallied over 100 pips from the daily swing lows, around the 1.2360 region, amid a broad-based US dollar weakness.

The USD remained on the defensive in the wake of the latest optimism that the coronavirus pandemic may be reaching its peak soon and was further pressured by the disappointing release of the US initial weekly jobless claims.

The already weaker sentiment surrounding the greenback deteriorated further, dragging the key USD Index below the 100.00 mark after the Fed announced that it will provide up to $2.3 trillion of additional loans to support the economy.

A further fall in the University of Michigan US Consumer Confidence Index, to 71.0 for April, and a scheduled speech by the Fed Chair Jerome Powell did little to provide any respite to the USD bulls or stall the pair's positive move.

The intraday momentum took along some short-term trading stops near the overnight swing highs, around the 1.2420 region, and turned out to be one of the key factors behind the pair's latest leg of a sudden pick up over the past hour or so.

It will now be interesting to see if the pair is able to capitalize on the move and make it through the key 1.2500 psychological mark, which might confirm a fresh bullish breakout and set the stage for a further near-term appreciating move.

Technical levels to watch