GBP/USD taps 1.20 mark, over 1-week tops after Powell’s comments and ahead of BoE

GBP/USD gained traction for the third straight session on Thursday amid sustained USD selling.
The USD weakened further after Powell said that the Fed still has room for further policy easing.
Market participants now shift focus to the latest BoE monetary policy update for a fresh impetus.

Haresh Menghani FXStreet

The bearish pressure around the greenback picked up paced in the last hour and lifted the GBP/USD pair to over one-week tops, around the key 1.2000 psychological mark.

Following the previous session's volatile swings and an early downtick to the 1.1775 region on Thursday, the pair caught some fresh bids and built on its recent recovery move from 35-year lows set last week.

The bullish mood for the third consecutive session, also marking the pair's fourth day of a positive move in the previous five, was exclusively sponsored by persistent offered bias surrounding the US dollar.

Meanwhile, the latest leg of the uptick came after the Fed Chair Jerome Powell, in an interview on NBC Today, said that the US central bank still has room for more action to combat coronavirus crisis.

This comes on the back of the Fed's recent unlimited quantitative easing program and exerted some additional downward pressure on the already weaker greenback during the mid-European session.

Moving ahead, market participants now shift their focus to the latest monetary policy update by the Bank of England, which will influence the GBP price dynamics and provide some meaningful impetus.

Technical levels to watch

GBP/USD

Overview
Today last price	1.1983
Today Daily Change	0.0103
Today Daily Change %	0.87
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

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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