GBP/USD sits near 4-1/2-month tops, around mid-1.3100s

  • Sustained USD selling assisted GBP/USD to gain traction for the tenth consecutive day on Friday.
  • Growth concerns, fiscal impasse, a steep decline in the US bond yields weighed heavily on the buck.
  • Technical buying above 1.3100 mark remained supportive; overbought conditions warrant caution.

The GBP/USD pair broke out of its European session consolidation phase and jumped to fresh multi-month tops, around the 1.3160 region in the last hour.

The pair prolonged its recent strong bullish trajectory and continued gaining positive traction for the tenth consecutive session on Friday. The prevalent bearish sentiment surrounding the US dollar was seen as one of the key factors fueling the momentum, which got an additional boost from some technical buying above the 1.3100 mark.

Investors remain worried that the ever-increasing number of coronavirus cases could undermine the US economic recovery. The market concerns resurfaced following the release of the advance US GDP report on Thursday, which showed that the world's largest economy collapsed by 32.9% annualized pace during the second quarter of 2020.

The greenback was further pressured by a more dovish FOMC statement on Wednesday, the ongoing downfall in the US Treasury bond yields and the impasse over the next round of the US fiscal measures. It is worth reporting that Republicans and Democrats have been struggling to reach a deal ahead of the expiry of some earlier provisions this Friday.

The USD remained depressed and failed to gain any respite following the release of second-tier US economic data – Core PCE Price Index and Personal Income/Spending data. Friday's US economic docket also features the release of Chicago PMI and Revised Michigan Consumer Sentiment, though is unlikely to provide any meaningful impetus.

With the USD price dynamics turning out to be an exclusive driver of the GBP/USD pair strong move up, bulls seemed rather unaffected by renewed lockdown measures in northwest England. The UK government imposed new restrictions on 4.3 million people in Greater Manchester, parts of West Yorkshire and East Lancashire after the recent rise in new coronavirus cases.

Meanwhile, extremely overbought conditions on short-term charts warrant some caution before placing fresh bullish bets. Nevertheless, the GBP/USD pair seems all set to post strong gains for the second consecutive week – also marking its fourth week of a positive move in the previous five – and record the highest weekly close since late January.

Technical levels to watch


Today last price 1.3146
Today Daily Change 0.0051
Today Daily Change % 0.39
Today daily open 1.3095
Daily SMA20 1.2687
Daily SMA50 1.2558
Daily SMA100 1.2417
Daily SMA200 1.2704
Previous Daily High 1.3103
Previous Daily Low 1.2945
Previous Weekly High 1.2804
Previous Weekly Low 1.2518
Previous Monthly High 1.2813
Previous Monthly Low 1.2252
Daily Fibonacci 38.2% 1.3042
Daily Fibonacci 61.8% 1.3005
Daily Pivot Point S1 1.2992
Daily Pivot Point S2 1.2889
Daily Pivot Point S3 1.2834
Daily Pivot Point R1 1.3151
Daily Pivot Point R2 1.3206
Daily Pivot Point R3 1.3309



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD weaker ahead of RBA’s monetary policy decision

The Aussie is weak, despite receding dollar’s demand and the robust performance of US indexes. Coronavirus developments hit the commodity-linked currency ahead of the RBA.


Gold: This just might be as good as it gets for gold

The price of gold is trading at $1,975 within a range of between $1,960.54 and $1,986.76 at the time of writing, virtually flat on the day in consolidation having eeked out a fresh all-time high.

Gold News

USD/JPY struggling to retain the 106.00 level

The USD/JPY pair traded as high as 106.46 on Monday but struggles to retain gains above the 106.00 level amid lack of dollar’s demand.


Ethereum on its way to regaining $400 while BNB hit a new high at $22.5

BTC/USD is more stable than other coins right now but has been able to recover from its crash towards $10,500. It is currently trading at $11,369 and faces very little resistance until $14,000.

Read more

WTI drops below $40 on demand worries, OPEC+ output increase

Crude oil prices posted losses last week and seem to be struggling to shake off the bearish pressure on Monday. As of writing, the barrel of West Texas Intermediate (WTI) was trading at $39.85, losing 1.5% on a daily basis.

Oil News