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GBP/USD hits fresh highs above 1.2400, USD recovery fades

Pound prints fresh weekly highs versus USD and EUR.
GBP/USD up more than 750 pips over the week, the best performance in years.

Matías Salord FXStreet

The GBP/USD pair broke the 1.2305 resistance during the American session and rose further. It climbed to 1.2415, the highest level since March 16. It is trading near the top, consolidating a weekly gain or around 770 pips, the biggest in years.

The greenback remains under pressure across the board. The recovery faded and it turned again to the downside weakened by falling US yields. On Thursday, USD dropped when equity prices jumped. On Friday, Wall Street is pulling back and the greenback is also lower, showing no correlation at the moment with equities.

Lower US yields could be the explanation for the weakness seen in the greenback. The DXY rose earlier on Friday to 99.80 and as of writing, trades at 98.84, the lowest in ten days. The 10-year US yield is around 0.72%, testing weekly lows.

Economic data from the US continues to show how dramatic is the economic impact of the coronavirus. Consumer confidence suffered the largest decline since 2008. Regarding Covid-19, the US surpassed China in confirmed cases.

The pound is outperforming on Friday, even after United Kingdom Prime Minister Boris Johnson announced he tested positive for coronavirus.

Technical levels

GBP/USD

Overview

Today last price1.2358

Today Daily Change0.0152

Today Daily Change %1.25

Today daily open1.2206

Trends

Daily SMA201.237

Daily SMA501.2749

Daily SMA1001.289

Daily SMA2001.2671

Levels

Previous Daily High1.223

Previous Daily Low1.1778

Previous Weekly High1.24

Previous Weekly Low1.1412

Previous Monthly High1.3204

Previous Monthly Low1.2726

Daily Fibonacci 38.2%1.2057

Daily Fibonacci 61.8%1.195

Daily Pivot Point S11.1912

Daily Pivot Point S21.1619

Daily Pivot Point S31.146

Daily Pivot Point R11.2365

Daily Pivot Point R21.2523

Daily Pivot Point R31.2817

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.

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