GBP/USD hits fresh highs above 1.3200 despite US dollar strength

Pound among top performers of the day, not affected by risk aversion.
Cable rises to 1.3220 ignoring greenback’s momentum.

Matías Salord FXStreet

The GBP/USD pair rose extended gains during the US session despite the rally of the greenback. It printed a fresh daily high at 1.3223, slightly below yesterday’s high. As of writing it is hovering below 1.3200, consolidating gains and almost 200 pips above Thursday’s low.

The rebound that started yesterday continued today even as the US dollar jumped across the board favor by risk aversion. Wall Street is falling by more than 1.30% and US bonds are soaring. Fears of a recession intensified today following the inversion of the Treasury yield curve and also after the US PMI report. Earlier today, the EZ PMI triggered a decline in equity markets and favored the greenback on a flight-to-safety, amid concerns of the slowdown in economic growth.

The pound is among the few currencies to be up versus the greenback on Friday. Brexit developments continue to be the key driver. The latest headline came from Irish PM Varadkar who said there won't be further extensions for the UK. Next week, PM May is expected to bring again her deal for a vote in the Parliament (Tuesday or Wednesday).

GBP/USD Levels to watch

To the upside, the immediate resistance is seen at 1.3220/30 (Mar 21 & 22 high), 1.3260 and 1.3295/1.3300 (Mar 15 & 18 high). On the flip side, support levels might lie at 1.3160 (European session high), 1.3080 (Mar 22 low) and 1.3020.

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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