- Weaker US dollar and a EUR/GBP gives cable a boost.
- GBP/USD rebounds at 1.3480 and climbs to fresh highs.
- A positive tone across fanatical markets also helps the upside.
The GBP/USD rebounded at 1.3480 and rose to 1.3521, reaching a new monthly high. It remains near the top, still unable to confirm levels above 1.3515/20 but with the bullish momentum intact.
The decline of EUR/GBP to the 0.8380 zone (2021 lows) is helping the overall tone of the pound that is also being favored by higher equity prices. In Wall Street, the Dow Jones gains 0.16% and the Nasdaq 0.53%.
Higher US yields are not helping significantly the greenback on Thursday. US economic data came in above expectations with Initial Jobless Claims falling under 200K and the December Chicago PMI at 63.1 against expectations of 62. The DXY was unable to benefit from those figures.
If GBP/USD manages to break and holds above 1.3520 it would gain more strength. The next strong resistance could be seen at 1.3560. On the flip side, 1.3445 is the area of immediate support, followed by 1.3400.
The pound is on its way to the second weekly gain in a row, as it continues to recover from levels under 1.3200. The 20-week simple moving average awaits at 1.3555.
Technical levels
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