GBP/USD jumps toward 1.2400 as pound soars
- Pound hits fresh highs versus USD and also against ERU and CHF.
- GBP/USD turns positive for the week, but losses strength near 1.2400.
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.
The pound gained momentum during the American session on the back of end-of-month flows and amid some improvement in risk appetite. It managed to print fresh highs versus the euro and the Swiss franc unaffected by the latest Brexit headlines that showed EU negotiator Barnier rejected the latest proposal from the UK for financial firms in doing business with the block.
From a technical perspective, the bounce from near 1.2250 in GBP/USD alleviated the bearish pressure, but still, the bias is negative. If the pair manages to stay firm above 1.2350 the greenback will lose momentum. Above 1.2405 the par will likely rise further toward 1.2450.
Technical levels