GBP/USD jumps to mid-1.2600s, back closer to multi-week tops


  • GBP/USD bounced around 90 pips from daily swing lows amid renewed USD selling bias.
  • A fresh leg down in the US bond yields undermined the USD, despite coronavirus jitters.
  • Bulls might now aim to surpass 200-day SMA hurdle near the 1.2700 round-figure mark.

The emergence of some fresh USD selling lifted the GBP/USD pair to mid-1.2600s, well within the striking distance of three-week tops set on Thursday.

The pair managed to attract some dip-buying on the last day of the week and rallied around 90 pips from daily swing lows to the 1.2565 region. Having failed to capitalize on its intraday positive move, the US dollar met with some fresh supply during the early North American session and was seen as one of the key factors that extended some strong support to the GBP/USD pair.

Despite concerns about the ever-increasing coronavirus cases, the greenback struggled to attract any haven bids, instead was undermined by a fresh leg down in the US Treasury bond yields. A weaker sentiment around the global equity markets drove investors to traditional safe-haven assets and dragged the longer-term US bond yields to the lowest level since April.

With the USD price dynamics turning out to be an exclusive driver of the pair's momentum, bulls seemed rather unaffected by persistent Brexit uncertainties. It is worth recalling that the European Union's executive arm on Thursday said that talks on the post-Brexit relationship have made little progress and there are still significant differences on a number of important issues.

Nevertheless, the GBP/USD pair still seems poised to make a fresh attempt towards challenging the very important 200-day SMA, around the 1.2700 mark. Some follow-through buying will be seen as a fresh trigger for bullish traders and set the stage for an extension of the pair's upward trajectory witnessed over the past two weeks or so.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2653
Today Daily Change 0.0046
Today Daily Change % 0.36
Today daily open 1.2607
 
Trends
Daily SMA20 1.2479
Daily SMA50 1.243
Daily SMA100 1.2441
Daily SMA200 1.2698
 
Levels
Previous Daily High 1.267
Previous Daily Low 1.26
Previous Weekly High 1.253
Previous Weekly Low 1.2252
Previous Monthly High 1.2813
Previous Monthly Low 1.2252
Daily Fibonacci 38.2% 1.2627
Daily Fibonacci 61.8% 1.2643
Daily Pivot Point S1 1.2581
Daily Pivot Point S2 1.2556
Daily Pivot Point S3 1.2512
Daily Pivot Point R1 1.2651
Daily Pivot Point R2 1.2695
Daily Pivot Point R3 1.2721

 

 

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