GBP/USD is at fresh two-week lows testing the 1.2675 resistance area

The Pound takes advantage of US Dollar weakness to hit fresh two-week highs at 1.2675.
A higher-than-expected increase in US Jobless Claims has increased bearish pressure on the Dollar.
GBP/USD is testing an important resistance area at 1.2675.

Guillermo Alcala FXStreet

The Sterling is building up bullish momentum on Thursday, buoyed by a favourable market sentiment, which is weighing on the safe-haven US Dollar.

Data from the US Labor Department revealed that Jobless Claims increased by 222K in the last week of March 29, from the upwardly revised 212K in the previous week. The market had anticipated a softer 214K increase.

Fed cut hopes are weighing on the USD

These figures together with the unexpectedly weak US Services data seen on Wednesday have restored investors confidence that the Fed might start cutting rates in June. This has improved risk appetite, capping the recovery of US Treasury yields and pushing the US Dollar lower.

Earlier this week, UK data showed that manufacturing activity expanded for the first time in the last two years. This has improved the outlook in the country’s economy, providing a fresh impulse to the Sterling.

The technical picture remains bearish, with the pair approaching an important support area at 1.2675-1.2695. Above here, the next target would be 1.275 and the March 21 high AT 1.2800. Supports are 1.2570 and 1.2535.

GBP/USD

Overview
Today last price	1.2666
Today Daily Change	0.0014
Today Daily Change %	0.11
Today daily open	1.2652

Trends
Daily SMA20	1.2699
Daily SMA50	1.267
Daily SMA100	1.2663
Daily SMA200	1.2588

Levels
Previous Daily High	1.2656
Previous Daily Low	1.2563
Previous Weekly High	1.2668
Previous Weekly Low	1.2586
Previous Monthly High	1.2894
Previous Monthly Low	1.2575
Daily Fibonacci 38.2%	1.262
Daily Fibonacci 61.8%	1.2598
Daily Pivot Point S1	1.2591
Daily Pivot Point S2	1.253
Daily Pivot Point S3	1.2498
Daily Pivot Point R1	1.2685
Daily Pivot Point R2	1.2717
Daily Pivot Point R3	1.2778

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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