GBP/USD surges above 1.2100 as US dollar collapses


  • Wall Street extends rally, Dow Jones up by more than 5%. 
  • DXY down 1.40%, boost GBP/USD to one-week highs above 1.2100.

The GBP/USD rose above 1.2000 at the beginning of the American session and recently reached a fresh one-week high at 1.2160. It is trading near the top, almost seven hundred pips above the weekly low. 

The ongoing recovery in Cable faces the next resistance at 1.2200/20 while the 1.1970/80 area has become a key short-term support. Technical indicators in the four hours chart are approaching overbought levels but the momentum remains solid with no signs of correction. 

It’s all about the greenback 

The decline of the US dollar is the critical driver of the GBP/USD rally. The DXY is down 1.40% on Thursday and it dropped back below 100.00, to 99.54, the lowest in a week. In Wall Street, the Dow Jones gains 5.30% and the Nasdaq 3.80%. The improvement in risk sentiment weakened the US dollar

Earlier on Thursday, Fed’s Powell said the central bank will not run out of ammunition. Later, initial jobless claims data showed the largest rise to record high levels: 3.283 million, almost five times the previous historic highs. 

The Fed is now on an open-ended QE program and the US Senate approved an economic package of $2 trillion, to mitigate the impact of the coronavirus. Those events help risk sentiment. Still volatility is at extreme levels and markets look unstable. 

Technical levels

GBP/USD

Overview
Today last price 1.2134
Today Daily Change 0.0254
Today Daily Change % 2.14
Today daily open 1.188
 
Trends
Daily SMA20 1.2404
Daily SMA50 1.2766
Daily SMA100 1.2896
Daily SMA200 1.2673
 
Levels
Previous Daily High 1.1974
Previous Daily Low 1.1639
Previous Weekly High 1.24
Previous Weekly Low 1.1412
Previous Monthly High 1.3204
Previous Monthly Low 1.2726
Daily Fibonacci 38.2% 1.1846
Daily Fibonacci 61.8% 1.1767
Daily Pivot Point S1 1.1688
Daily Pivot Point S2 1.1496
Daily Pivot Point S3 1.1354
Daily Pivot Point R1 1.2022
Daily Pivot Point R2 1.2165
Daily Pivot Point R3 1.2357

 

 

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

Editors’ Picks

EUR/USD extends slump after NFP shows massive job loss

EUR/USD is trading below 1.08, down on the day. The Non-Farm Payrolls report has shown a loss of 701,000 jobs, worse than expected. The ISM Non-Manufacturing PMI surprised to the upside with 52.5 points. 

EUR/USD News

GBP/USD drops below 1.23 amid sour mood, after UK data

GBP/USD has dropped below 1.23 as the market mood sours. Final UK Services PMI dropped to 34.5 points, worse than expected.  

GBP/USD News

NFP Quick Analysis: 701K jobs lost only be tip of the iceberg, why King Dollar is ready for coronation

The US lost 701,000 jobs in March, the worst in 11 years. The Non-Farm Payrolls figures are lagging the fast-moving events. Wage growth is also skewed and should be ignored. The safe-haven dollar has room to rise. 

Read more

WTI trades in three-week’s highs near $26.50 a barrel

WTI is jumping from multi-year lows following the US President Trump’s tweet of yesterday (Thursday) suggesting a Saudi-Russian deal was on the pipeline.

Oil News

Gold remains confined in a range, moves little post-NFP

Gold extended its sideways consolidative price action around the $1615 region and had a rather muted reaction to the US monthly employment details

Gold News

Forex MAJORS

Cryptocurrencies

Signatures