- Pound extends gains, top performer of the day.
- GBP/USD up 300 pips last week lows.
The GBP/USD rose further late during the US session and printed a fresh 2-week high at 1.3071. Near the end of the day, cable trades at 1.3065, 150 pips above yesterday’s close (the best performance in more than a month) and on its way to the third gain in-a-row.
The last run higher in GBP/USD took place following comments from UK Conservative Steve Baker. He said the Malthouse compromise is alive after a meeting with UK PM Theresa May. She will meet Jean-Claude Juncker, President of the European Commission, on Wednesday. The pair was already higher on the back of a weaker US dollar and also boosted by renewed Brexit hopes.
Regarding the greenback, the DXY lost 0.30% and dropped from 96.80 to 96.47, reaching the lowest level in a week. The US 10-year yield fell to weekly lows at 2.634% and then bounced to 2.652%.
Technical outlook
“The pair is now above the 61.8% retracement of the 1.3217/1.2772 slide at around 1.3050, up over 100 pips in the American session, resulting in technical indicators reaching extreme overbought readings in the 4 hours chart. Nevertheless, both the Momentum and the RSI maintain their strong bullish slopes, while the price is far above a now bullish 20 SMA and a directionless 200 EMA, all of which favors an upward extension ahead”, says Valeria Bednarik, Chief Analyst at FXStreet.
She warns that the risk is as always uncertainty surrounding Brexit as failed talks between UK PM May and EC President Juncker could result in the pair giving back all of its recent gains.
GBP/USD Levels
GBP/USD
Overview:
Today Last Price: 1.3068
Today Daily change: 0.0140 pips
Today Daily change %: 1.08%
Today Daily Open: 1.2928
Trends:
Daily SMA20: 1.2993
Daily SMA50: 1.2831
Daily SMA100: 1.2877
Daily SMA200: 1.3004
Levels:
Previous Daily High: 1.294
Previous Daily Low: 1.2891
Previous Weekly High: 1.2959
Previous Weekly Low: 1.2773
Previous Monthly High: 1.3214
Previous Monthly Low: 1.2438
Daily Fibonacci 38.2%: 1.2921
Daily Fibonacci 61.8%: 1.291
Daily Pivot Point S1: 1.29
Daily Pivot Point S2: 1.2871
Daily Pivot Point S3: 1.2851
Daily Pivot Point R1: 1.2948
Daily Pivot Point R2: 1.2968
Daily Pivot Point R3: 1.2997
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