GBP / USD remains above 1.3700 despite USD strength

• The pound among the best performers on Thursday, also against the euro.
• GBP / USD has risen for the day after losing nearly two hundred pips in the previous two sessions.

The GBP/USD It is hovering around 1.3720 / 25, up about 40 pips so far on Thursday. Cable remains above 1.3700 even as the US dollar strengthens due to risk aversion.

The pound is among the best performers on Thursday, rising, particularly against the euro. EUR / GBP broke below 0.8600 while EUR / USD is falling below 1.1800, both pairs accelerated the decline in recent hours.

The UK and the European Union appear to have improved their dispute over vaccines. European Union leaders are meeting to discuss vaccine exports and how to speed up the process.

In the United States, the economic data was better than expected. Initial and continuing jobless claims fell to the lowest level in a year. Fourth quarter GDP data was revised up to 4.3% (annualized) from 4.1% previously.

The positive economic figures did not help market sentiment on Wall Street. The Dow Jones falls 0.40% and the Nasdaq falls 1%. US bond yields are moving away from lows, with a 10-year bond yield retreating above 1.60%.

Short-term levels

GBP / USD is still moving on a bearish bias and Thursday’s gains are seen as corrective so far. On the upside, the next resistance is seen at 1.3750 followed by 1.3780. The critical level to overcome is 1.3800. A recovery above the latter would ease the downward pressure.

On the other hand, immediate support is seen at 1.3700, and a break to the downside would expose the weekly low 1.3665 / 70.

Technical levels