GBP/USD hit weekly highs above 1.3740 on dollar weakness
- DXY turns negatives, falls to six-day lows.
- GBP/USD continues to move in a range, closer to the upper limit.
The GBP/USD bounced to the upside after the beginning of the American session and climbed to 1.3749, reaching the highest level in a week. It remains near the highs, on the back of a weaker US dollar across the board.
The USD Dollar Index was recovering from Friday’s slide and turned to the downside, falling to 90.89, a six-day low. During the American session, risk appetite and the move off highs of US bond yields, weakened the dollar.
In Wall Street, stock indices hit record highs. The Dow Jones is up by 0.40%, and the Nasdaq gains 0.57%. Equity prices are on its way to the sixth consecutive daily gain supported by economic expectation, the vaccines, stimulus hopes and corporate results.
Range prevails in GBP/USD
The rebound of cable was capped below the recent highs and the upper limited of the trading range near 1.3760. The mentioned level continues to be a key resistance that if broken, could clear the way for 1.3800. On the flip side, 1.3600 is again a support level to consider. A consolidation below would suggest more weakness ahead.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
