- GBP/USD gains ground for the third day in a row and hits a new weekly high.
- A combination of factors weigh on the USD and offer support to the pair.
- Technical buying above the 1.2100 level also contributes to the strong intraday rally.
The pair GBP/USD extends this week’s bounce from near 1.1900, where the all-important 200-day SMA sits, and gains traction for the third day in a row on Thursday. Buying interest picks up during the first half of the European session and lifts the pair to a new weekly high around the 1.2150 area in the last hour.
The US dollar fails to take advantage of its post-NFP recovery and pulls back sharply from a 1-month high, which in turn pushes GBP/USD higher. Uncertainty about the path of Fed rate hikes puts some downward pressure on US Treasury yields. This, coupled with a good recovery in global risk sentiment, weighs on the USD as a safe haven.
Apart from this, the possibility that they have been activated some short-term stops above the 1.2100 level seems to contribute to the positive intraday movement of GBP/USD. That being said, the prospect of further monetary tightening by the Fed should help limit the dollar’s decline and keep any significant rise in GBP/USD at bay, at least for now.
It’s worth remembering that Fed Chairman Jerome Powell acknowledged on Tuesday that rates they could have to rise more than expected if the economy remains strong. A number of FOMC members echoed Powell’s view that additional rate hikes were justified to fully control inflation. This, coupled with fears of an imminent recession, should support the safe-haven dollar.
Apart of this, expectations that the Bank of England (BoE) is nearing the end of the current hike cycle Rates could help cap GBP/USD. In fact, the UK central bank removed the phrase that it would “respond vigorously, as needed”. This suggests that the BoE is increasingly unsure whether further policy tightening is warranted.
Therefore, it remains to be seen if the GBP/USD pair is able to capitalize on the momentum or runs into further selling at higher levels. Market participants are now waiting for the release of the initial weekly US jobless claims data for any momentum. This, coupled with broader risk sentiment, could influence USD price action and allow traders to take advantage of some short-term opportunities.
Technical levels to watch
GBP/USD
Overview | |
---|---|
Last price today | 1.2132 |
Today I change daily | 0.0064 |
today’s daily variation | 0.53 |
today’s daily opening | 1.2068 |
Trends | |
---|---|
daily SMA20 | 1.2271 |
daily SMA50 | 1.2193 |
daily SMA100 | 1.1824 |
daily SMA200 | 1.1948 |
levels | |
---|---|
previous daily high | 1,211 |
previous daily low | 1.2036 |
Previous Weekly High | 1.2418 |
previous weekly low | 1,205 |
Previous Monthly High | 1.2448 |
Previous monthly minimum | 1.1841 |
Fibonacci daily 38.2 | 1.2082 |
Fibonacci 61.8% daily | 1.2064 |
Daily Pivot Point S1 | 1.2033 |
Daily Pivot Point S2 | 1.1998 |
Daily Pivot Point S3 | 1.1959 |
Daily Pivot Point R1 | 1.2107 |
Daily Pivot Point R2 | 1.2145 |
Daily Pivot Point R3 | 1,218 |
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Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.