GBP/USD jumps to 20-day highs near 1.1500 against weak dollar

  • United Kingdom: Sunak’s first hours as prime minister.
  • The dollar experiences sharp decline in Treasury bond yields.
  • GBP/USD is above 1.1400 and is going for 1.1495/1.1500, the maximum of October.

The GBP/USD accelerated to the upside significantly and with great force breaking 1.1400. The pair is trading at 1.1485, the highest level since Oct 5, supported by dollar weakness, while at the same time the pound is among the best performing currencies.

The great novelty in the United Kingdom is that it has a new prime minister and it is Rishi Sunak. The Conservative Party is still in government but still faces the great challenge of unity. News about the new president’s plans and cabinet are awaited. The first reactions of the pound are positive, since in addition to advancing against the dollar it does so against the euro. EUR/GBP broke below 0.8700.

The main driver of the latest rise in GBP/USD is being a sharp drop in the dollar in the market. A decline in Treasury bond yields. The 10-year benchmark yields 4.07%, the lowest in six days. Stocks on Wall Street are in positive territory.

Should it assert itself above 1.1400, the positive tone in GBP/USD will continue. Next resistance is at the October highs at 1.1495/1.1500. Above will follow 1.1525 and 1.1560.

Technical levels

GBP/USD

Panorama
Last Price Today 1.1419
Today’s Daily Change 0.0139
Today’s Daily Change % 1.23
Today’s Daily Opening 1,128
Trends
20 Daily SMA 1,118
50 Daily SMA 1.1413
100 Daily SMA 1.1771
200 Daily SMA 1.2407
levels
Previous Daily High 1.1409
Previous Daily Minimum 1.1258
Previous Maximum Weekly 1,144
Previous Weekly Minimum 1,106
Monthly Prior Maximum 1.1738
Previous Monthly Minimum 1.0339
Daily Fibonacci 38.2% 1.1316
Daily Fibonacci 61.8% 1.1352
Daily Pivot Point S1 1.1222
Daily Pivot Point S2 1.1165
Daily Pivot Point S3 1.1071
Daily Pivot Point R1 1.1373
Daily Pivot Point R2 1.1467
Daily Pivot Point R3 1.1524

Source: Fx Street

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