GBP/USD outlook: Downbeat economic data and weakening risk mode maintain pressure on sterling
Cable remains firmly in red for the third straight day and pressures pivotal support at 1.2250 (Fibo 76.4% of 1.2074/1.2813/Monday's low, the lowest in one month).
Fresh weakness probes again into thick daily cloud after Monday's dip failed to register daily close in the cloud.
Fading risk sentiment keeps sterling under pressure which increases on expectations of the UK re-opening the most of the economy and further spending on infrastructure that the government is preparing for.
GBP/USD jumps toward 1.2400 as pound soars
The GBP/USD pair rose further and extended gains. It printed a fresh daily high at 1.2392, the highest level since Friday. The pair trades at 1.2370, up almost 80 pips for the day, holding firm to recent gains despite moving off highs.
The move higher was triggered by a stronger pound and also after the DXY turned negative for the day, after making a reversal. The greenback retreated despite US economic data and as equity prices approached the recent daily top. Not even higher US yields contributed to limit the upside in GBP/USD. Chairman Powell and Treasury Secretary Mnuchin will speak about how to recover the economy at a House Financial Services Committee hearing.
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