GBP/USD prints fresh highs near 1.2830, US data eyed

The GBP/USD pair extends its vertical rise in the European session, now flirting with daily tops reached at 1.2828 last minutes.

The latest leg higher in cable can be mainly attributed to a pause in a risk-on rally seen in the treasury yields, which boosts the pound’s attractiveness as an alternative higher yielding currency. The benchmark 10-year treasury yields stalled its recovery at 2.311%, now reversing slightly to 2.305%.

However, further upside remains uncertain amid mixed European equity markets and downbeat UK public sector net borrowing data, which arrived at GBP 4.365bn versus GBP 1.500bn expected.

Next of note for the major remains the US datasets due later in the NA session, as investors gear up for Wednesday’s Trump administration’s tax overhaul announcement.

GBP/USD Levels to consider            

A break above 1.2851 (Apr 20 high) could lift the pair above 1.2871 (Apr 24 high), beyond which a test of 1.2912 (flash rally high) is imminent. Conversely, a break below 1.2758 (Apr 21 low), leading to a subsequent break below 1.2725 (10-DMA) is likely to drag the pair towards testing its next support near 1.2700/1.2694 (zero figure’ classic     S3).