- The pound was neutral against the dollar on Thursday.
- Attention of traders in the bond market, data from the US and Wall Street.
The GBP / USD is trading unchanged significantly from Wednesday’s close, which was the highest since 2018, albeit far from the 1.4242 peak. The price is around 1.4120 / 30, supported by the weakness of the dollar and the pound without the brightness of previous days.
The UK currency ran out of steam after Wednesday’s jump during the Asian session. After failing to sustain GBP / USD above 1.4200, the pound lost momentum. This also coincided with a reversal of the EUR / GBP, which from yesterday’s low, rose more than 100 pips.
The GBP / USD pullback appears to be moderated by a weak dollar. The greenback loses ground against the main currencies, despite the rise in the yields of Treasury bonds. The 10-year rate is at 1.45%, at new highs in one year.
The Theptimismo on the stock markets also helps to slow down the declines in GBP / USD. US indices are at record highs in a widespread rally. In the preview of the opening, futures have lost something for the moment.
Later in the day will be released the weekly report of requests for unemployment benefits in the US, in addition to the report of sale of existing homes, and orders of durable goods.
Firm trend, although signs to the contrary emerge
From a technical point of view, GBP / USD remains firm underlying bullish trend, albeit down time. The pound is snapping a five-day streak of rising and hitting highs in years, which may anticipate some consolidation ahead.
On Thursday the pair found resistance at 1.4175, a level that if broken would expose the 1.4200 area. To the downside the first support appears at 1.4120 and then Wednesday’s low at 1.4080.
Technical levels
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