GBP/USD holds on to gains despite DXY’s recovery

Pound outperforms on Thursday, rises versus USD and EUR.
GBP/USD gains for the third day in a row, turns positive for the week.

Matías Salord FXStreet

The GBP/USD pair rose on Thursday reaching the highest level in six days at 1.3081 during the American session. Then it stabilized around 1.3065/70, posting a daily gain of 30 pips.

Cable moved all day with a bullish bias and rose even on US hours despite the strength of the US dollar. The DXY climbed today to 97.36, recovering from weekly lows on the back of US data and higher Treasury yields. Retail sales excluding autos rose 0.7% in December, the largest gain in five months while the Philly Fed jump to 17 from 2.4.

“With UK activity and inflation data soft, there is a strong probability the Bank of England (BoE) will cut 25bp on 30 January, yet sterling seems to have discounted that prospect and outperformed”, explained analysts at ANZ about the recent moves seen in GBP.

Ahead of the Asian session, cable remains quiet, holding to modest weekly gains. In the US Senate, the impeachment trial of President Trump began with a reading of the charges. Earlier today, the Senate passed the new U.S.-Mexico-Canada Agreement (USMCA). Chinese growth data is due on Friday while in the UK, December Retail Sales and in the US, Housing Starts and Industrial Production.

Technical Levels

GBP/USD

Overview
Today last price	1.3067
Today Daily Change	0.0036
Today Daily Change %	0.28
Today daily open	1.3031

Trends
Daily SMA20	1.3065
Daily SMA50	1.3025
Daily SMA100	1.2778
Daily SMA200	1.2691

Levels
Previous Daily High	1.3043
Previous Daily Low	1.2985
Previous Weekly High	1.3213
Previous Weekly Low	1.3013
Previous Monthly High	1.3515
Previous Monthly Low	1.2896
Daily Fibonacci 38.2%	1.3021
Daily Fibonacci 61.8%	1.3007
Daily Pivot Point S1	1.2996
Daily Pivot Point S2	1.2961
Daily Pivot Point S3	1.2938
Daily Pivot Point R1	1.3054
Daily Pivot Point R2	1.3078
Daily Pivot Point R3	1.3112

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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