GBP/USD refreshes weekly tops, 1.3800 mark back in sight


  • GBP/USD gained strong follow-through traction for the second straight session on Thursday.
  • Some cross-drive strength stemming from a slump in the EUR/GBP provided a goodish lift.
  • A subdued USD price action remained supportive of the move up amid the risk-on impulse.
  • An unexpected jump in the US Initial Weekly Jobless Claims failed to impress the USD bulls.

The GBP/USD pair continued scaling higher heading into the North American session and climbed to fresh weekly tops, around the 1.3775 region in the last hour.

The pair built on the previous day's solid rebound of over 130 pips from sub-1.3600 levels and gained some strong follow-through traction for the second consecutive session on Thursday. The momentum lacked any obvious fundamental catalyst and could be solely attributed to some cross-driven strength stemming from a sharp fall in the EUR/GBP.

Apart from this, a generally positive tone around the equity markets acted as a headwind for the safe-haven US dollar and provided an additional boost to the GBP/USD pair. On the economic data front, the US Initial Weekly Jobless Claims unexpectedly jumped to 419K during the week ended July 16 from the previous week's upwardly revised reading of 368K.

That said, the resurgence of the COVID-19 infections in the UK, along with the impasse over the Northern Ireland Protocol of the Brexit deal might cap gains for the GBP/USD pair. In fact, new cases have been rising by more than 50,000 a day in the UK. On the Brexit front, the EU rejected the UK’s demand for a new approach to the Northern Ireland Protocol.

Meanwhile, the UK Prime Minister spokesman told reporters this Thursday that Johnson had spoken to EU Commission Head and urged the EU to look at the proposals seriously. Hence, it will be prudent to wait for some strong follow-through buying before confirming that the GBP/USD pair has bottomed out in the near-term and positioning for any further appreciating move.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3767
Today Daily Change 0.0055
Today Daily Change % 0.40
Today daily open 1.3712
 
Trends
Daily SMA20 1.3813
Daily SMA50 1.3986
Daily SMA100 1.3927
Daily SMA200 1.3706
 
Levels
Previous Daily High 1.3723
Previous Daily Low 1.3591
Previous Weekly High 1.391
Previous Weekly Low 1.3761
Previous Monthly High 1.4249
Previous Monthly Low 1.3787
Daily Fibonacci 38.2% 1.3673
Daily Fibonacci 61.8% 1.3642
Daily Pivot Point S1 1.3628
Daily Pivot Point S2 1.3543
Daily Pivot Point S3 1.3496
Daily Pivot Point R1 1.376
Daily Pivot Point R2 1.3807
Daily Pivot Point R3 1.3892

 

 

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