- Pound prints fresh weekly highs versus USD and EUR.
- GBP/USD up more than 750 pips over the week, the best performance in years.
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Latest Forex News
Editors’ Picks
AUD/USD: Bears attack 0.7700 ahead of China GDP
AUD/USD extends Friday’s downbeat momentum towards the 0.7700 threshold at the start of Monday’s Asian session. The Aussie pair declined the most since late October the previous day as the US dollar benefitted from the risk-off mood.
GBP/USD: Further restrictions in the UK may hit the pound
The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged.
Gold: Further decline toward $1,800 remains on the cards
Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817.
Darkest before dawn
The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.
DXY breaks above key downtrend, eyes move above 91.00
USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.