GBP/USD spikes to fresh session tops, around 1.2970 level

Haresh Menghani FXStreet

• The GBP remains supported by Carney’s more upbeat comments on Thursday.
• A subdued USD price action near two-week tops prompts some short-covering.

The GBP/USD pair quickly reversed a dip to an intraday low level of 1.2921 and rallied nearly 50-pips in the last hour, now eyeing a move towards the overnight swing high.

The British Pound remained supported by Thursday's more upbeat comments by the BoE Governor Mark Carney, saying that markets should not prepare for a scenario of a rate cut and (or) no further rate hikes.

Meanwhile, the US Dollar failed to capitalize on the recent rally and witnessed a subdued action, albeit held steady, near two-week highs, which could be one of the other factors extending some support to the major.

The latest leg of a sudden pickup over the past couple of hours lacked any obvious fundamental catalyst and could be attributed to some follow-through short-covering on a sustained move back above mid-1.2900s.

Against the backdrop of the uncertainty surrounding Brexit, market participants expect volatility to remain elevated in the near-term and hence, it would now be interesting to see if the pair is able to reclaim the critical 1.30 handle.

Technical levels to watch

GBP/USD

Overview:
    Today Last Price: 1.2961
    Today Daily change %: 0.09%
    Today Daily Open: 1.2949
Trends:
    Daily SMA20: 1.2997
    Daily SMA50: 1.2808
    Daily SMA100: 1.2892
    Daily SMA200: 1.3027
Levels:
    Previous Daily High: 1.2997
    Previous Daily Low: 1.2854
    Previous Weekly High: 1.3212
    Previous Weekly Low: 1.3043
    Previous Monthly High: 1.3214
    Previous Monthly Low: 1.2438
    Daily Fibonacci 38.2%: 1.2942
    Daily Fibonacci 61.8%: 1.2908
    Daily Pivot Point S1: 1.287
    Daily Pivot Point S2: 1.2791
    Daily Pivot Point S3: 1.2727
    Daily Pivot Point R1: 1.3012
    Daily Pivot Point R2: 1.3076
    Daily Pivot Point R3: 1.3155

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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