- The dollar retreats across the market ahead of economic data.
- GBP/USD faces key resistance level at 1.2555.
- The pound also rises against the euro.
The GBP/USD is trading at daily highs around 1.2550, recovering after falling as low as 1.2456 on Wednesday, the lowest since May 20. The gains are being driven by a general weakness of the dollar.
Greenback trims recent gains. DXY trades at 102.15, down 0.35%, while Treasury yields hold around recent levels. Stocks are rising in Europe, as are futures on Wall Street.
In London the markets do not operate because it is a bank holiday. Friday will be a holiday again for Queen Elizabeth II’s platinum jubilee.
Important US economic data will be released on Thursday, including ADP’s private sector employment report, weekly jobless claims, first quarter productivity and April factory orders. The president of the Cleveland Fed will speak on the economic outlook. Friday will be the turn of the employment report.
resistors ahead
Thursday’s rally is erasing half of Wednesday’s losses. GBP/USD remains close to highs. Upward, the area around 1.2555 is key and rising and firming above it would give extra support to the pound. Then a short-term bearish holding line appears at 1.2570.
Should it fail to break through 1.2555, GBP/USD could pull back, with initial support at 1.2515, followed by 1.2495 and then 1.2460, Wednesday’s low zone.
Technical levels
Source: Fx Street
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