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

• 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

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.