GBP/USD climbs to weekly tops, further beyond 1.2400 mark

The GBP/USD pair climbed to fresh weekly tops during the early European session and finally seems to have found acceptance above the 1.2400 round-figure mark.

The pair quickly reversed an early dip to the 1.2360 region and turned positive for the third consecutive session, albeit lacked any follow-through amid a subdued activity through the early part Thursday's trading action.

The US dollar remained on the defensive in the wake of the latest optimism over expectations that the coronavirus pandemic peak could come soon and was further pressured by a weaker tone around the US Treasury bond yields.

However, the fact that the United Kingdom recorded its highest daily death toll on Wednesday held investors from placing any aggressive bullish bets and seemed to be one of the key factors capping any strong gains.

Meanwhile, Thursday's mixed UK macro data, showing an unexpected economic contraction and a surge in the trade balance for February, did little to impress bullish traders or assist the pair to capitalize on this week's goodish positive move.

Hence, it will be prudent to wait for some strong follow-through buying before traders start positioning for any further appreciating move. In the meantime, Thursday's release of the US initial weekly jobless claims will be looked upon for some impetus.

This coupled with the Fed Chair Jerome Powell's scheduled speech and fresh developments surrounding the coronavirus saga might influence the USD price dynamics and contribute towards producing some meaningful trading opportunities.

Technical levels to watch