- The weaker US dollar and EUR / GBP give the pound a boost.
- GBP / USD bounces off 1.3480 and climbs to new highs.
- A positive tone in the financial markets also helps the rise.
The GBP/USD it rallied to 1.3480 and climbed to 1.3521, reaching a new monthly high. It remains near the top of the range, still unable to confirm levels above 1.3515 / 20 but with bullish momentum intact.
The EUR / GBP slide to the 0.8380 zone (2021 lows) is helping the overall tone of the pound which is also supported by higher share prices. On Wall Street, the Dow Jones is up 0.16% and the Nasdaq up 0.53%.
Higher US yields are not helping the dollar significantly on Thursday. US economic data beat expectations with initial jobless claims below 200,000 and the Chicago PMI for December at 63.1 versus expectations of 62. The DXY was unable to benefit from those figures.
If GBP / USD manages to break out and sustain above 1.3520, it would gain more strength. The next strong resistance could be seen at 1.3560. On the other hand, 1.3445 is the immediate support area, followed by 1.3400.
The pound is on its way to the second consecutive weekly gain as it continues to rebound from levels below 1.3200. The 20-week simple moving average awaits at 1.3555.
Technical levels
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