- The pound is aiming for the highest daily close in a month.
- The pound continues to benefit from BoE expectations.
- Mixed US data: Initial jobless claims rise unexpectedly.
The pair GBP/USD rose to 1.3637, after the start of the American session reaching the highest level in a week. Later, the pair pulled back towards 1.3600, but was still holding gains for the third day in a row and was about to post the highest close in a month.
Pound remains strong and also higher against Euro as EUR/GBP trades below 0.8350, the lowest level in two weeks after higher than expected UK inflation data and also amidst concerns about the border with Ukraine.
The dollar is mixed on Thursday, with DXY rising 0.04%. US economic data was mixed. Initial jobless claims unexpectedly rose to the highest level in three weeks, while housing starts fell more than forecast. Market participants mostly ignored the numbers. His attention is on the headlines about Russia, Ukraine and the United States.
US President Biden and other US officials warned of an imminent attack. The situation triggered a drop in equity markets and sent treasuries higher. The drop in bond yields weakened the dollar.
Additional technical levels
A daily close above 1.3600 would be a positive development for the pound. In terms of levels, the next resistance is located in the area of 1.3645 (high of last week) followed by 1.3662.
On the downside, below 1.3600, the next support lies at 1.3560. A break down would turn the very short-term bias bearish/neutral.
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
