GBP/USD spikes to fresh session tops, beyond 1.2500 mark

  • GBP/USD quickly reversed the European session dip to the 1.2460 region.
  • The strong intraday bounce seemed unaffected by resurgent USD demand.
  • Concerns about rising COVID-19 cases might keep a lid on additional gains.

The GBP/USD pair rallied around 60-65 pips from the European session lows and refreshed daily tops, around the 1.2520-25 region in the last hour.

Having failed to find acceptance above the key 1.2500 psychological mark, the pair witnessed some intraday pullback during the first half of trading action on Tuesday. The early downtick was sponsored by a goodish pickup in the US dollar demand amid a slight deterioration in the global risk sentiment.

Despite the incoming positive economic data, investors remain concerned that the continuous rise in the number of new coronavirus cases could trigger renewed lockdown measures. This, in turn, dampened prospects for a V-shaped global economic recovery and led to a modest pullback in the equity markets.

This coupled with persistent Brexit-related uncertainties further took its toll on the British pound. The GBP/USD pair, however, showed some resilience at lower levels, instead witnessed a dramatic turnaround and took along some intraday trading stops placed near the 1.2500 round-figure mark.

Meanwhile, the uptick lacked any obvious fundamental catalyst and could be solely attributed to some intraday short-covering move. As the UK and EU negotiating teams set to resume post-Brexit talks, investors seemed inclined to lighten their bearish bets in anticipation of any positive development.

Hence, it will be prudent to wait for some strong follow-through buying before positioning for any further near-term appreciating move. A sustained move beyond last week's swing high, around the 1.2530 level, might be seen as a key trigger for bulls and set the stage for a move towards the 1.2600 mark.

Technical levels to watch


Today last price 1.252
Today Daily Change 0.0028
Today Daily Change % 0.22
Today daily open 1.2492
Daily SMA20 1.2495
Daily SMA50 1.2424
Daily SMA100 1.2451
Daily SMA200 1.2694
Previous Daily High 1.252
Previous Daily Low 1.2465
Previous Weekly High 1.253
Previous Weekly Low 1.2252
Previous Monthly High 1.2813
Previous Monthly Low 1.2252
Daily Fibonacci 38.2% 1.2499
Daily Fibonacci 61.8% 1.2486
Daily Pivot Point S1 1.2464
Daily Pivot Point S2 1.2437
Daily Pivot Point S3 1.2409
Daily Pivot Point R1 1.252
Daily Pivot Point R2 1.2548
Daily Pivot Point R3 1.2576



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

EUR/USD nears 1.19 amid mixed US data

EUR/USD is trading close to 1.19, extending its gains after ADP's private-sector report badly misses expectations with an increase of only 167,000 jobs in July. The greenback had already been falling with yields. The ISM Non-Manufacturing PMI beat with 58.1. 


XAU/USD bulls unstoppable, renews life-time highs near $2040

With ‘buy the dips’ emerging as the main underlying theme behind the gold price action so far this week, the bulls flex their muscles further to record fresh all-time highs near $2040.

Gold News

GBP/USD trades well above 1.31 amid dollar weakness

GBP/USD is advancing towards this month high at 1.3169, recovering as the dollar retreats. The UK government is under scrutiny for its management of the virus crisis. US Services PMIs are eyed. The ADP NFP missed with 167K.


ETH/BTC on retreat, BTC recovery gains traction

ETH/BTC has topped at $0.03528 on Tuesday and retreated to $0.03448 by the time of writing. The cross has lost about 1% since the start of the day. The RSI on a daily chart reversed to the downside, signaling that the price is ready for a correction from overbought territory.

Read more

WTI hits fresh two-week highs near $42.50 ahead of EIA data

WTI (futures on Nymex) extends its winning-streak into the third straight day on Wednesday, as the bulls challenge the July high of $42.51.

Oil News