GBP/USD sees cross driven strength, rises above 100-month SMA

GBP/USD jumps above 100-month SMA for first since August 2014.
Cable sees high volatility reportedly due to flury of activity in GBP/JPY and EUR/GBP.

Omkar Godbole FXStreet Contributor

GBP/USD surged by roughly 100 pips during Wednesday's Asian trading hours to print 34-month highs above the 100-hour Simple Moving Average (SMA).

The pair reached a high of 1.4241 and was last seen trading near 1.4165, still representing a 0.37% gain on the day. The 100-month SMA is located at 1.4142.

Cable's 100-pip rise is quite intriguing as the currency rarely charts big moves in Asia. According to Reuters, increased buying in GBP/JPY pulled GBP/USD higher. The GBP/JPY pair charted a 150-pip rally to 150.11 early today.

Meanwhile, rumors are doing the rounds that EUR/GBP's plunge triggered stop losses on long trades, leading to more robust demand for Pound and higher GBP/USD. It remains to be seen if the pair keeps the Asian session gains during the day ahead.

The currency pair has gained 6% this year on broad-based dollar weakness, increased hopes for a quick vaccine-driven economic recovery in the UK.

Technical levels

GBP/USD

Overview
Today last price	1.4169
Today Daily Change	0.0055
Today Daily Change %	0.39
Today daily open	1.4114

Trends
Daily SMA20	1.3819
Daily SMA50	1.3679
Daily SMA100	1.3424
Daily SMA200	1.3102

Levels
Previous Daily High	1.4117
Previous Daily Low	1.4054
Previous Weekly High	1.4036
Previous Weekly Low	1.383
Previous Monthly High	1.3759
Previous Monthly Low	1.3451
Daily Fibonacci 38.2%	1.4093
Daily Fibonacci 61.8%	1.4078
Daily Pivot Point S1	1.4073
Daily Pivot Point S2	1.4032
Daily Pivot Point S3	1.401
Daily Pivot Point R1	1.4136
Daily Pivot Point R2	1.4158
Daily Pivot Point R3	1.4198

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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