The GBP/USD pair gained traction in the late NA session and reached its highest level since Tuesday at 1.3031. As of writing, the pair is trading at 1.3012, gaining 34 pips, or 0.26%, on the day.
The pair's recent upsurge seems to be fueled by a broad-based greenback sell-off. Although the US Dollar Index was able to recover back above the 93 handle following the initial drop amid weaker-than-expected inflation data from the U.S., it came under a renewed selling pressure in the last hour as the U.S. Treasury-bond yields fell sharply with the 10-year reference dropping to its lowest level in six weeks at 2.182%. As of writing, the US Dollar Index was at 92.86, losing 0.47%.
Despite that recent rise, the pair is still looking to close the week with losses as this week's data from the U.K. failed to impress the markets and the uncertainty surrounding the Brexit negotiations continue to force investors to refrain from making large cable positions.
With no more data left in the remainder of the session, the pair's price action could continue to be driven by the DXY movements.
The RSI on the daily graph confirms the short-term neutral outlook as well as it moves sideways near the 50 mark. The pair could encounter the first technical support at 1.2955 (50-DMA) before 1.2915 (100-DMA) and 1.2810 (Jul. 12 low). On the upside, resistances align could be seen at 1.3065 (20-DMA), 1.3160 (Aug. 4 low) and 1.3200 (psychological level).
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 securities. 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 Forex 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.