- 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.
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
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