- GBP / USD jumps above the 100-month SMA for the first time since August 2014.
- GBP / USD sees high volatility due to heavy activity in GBP / JPY and EUR / GBP.
The GBP / USD has risen approximately 100 pips during the Asian session on Wednesday to reach 34-month highs above the 100-month simple moving average.
The pair has reached a maximum of 1.4241, although it has subsequently regressed. At the time of writing, the pair is trading around 1.4182, up 0.48% on the day. The 100-month SMA is at 1.4142.
GBP / USD’s 100 pip surge is quite intriguing as the currency rarely makes big moves during the Asian session. According to Reuters, increased buying in GBP / JPY pushed GBP / USD higher. GBP / JPY posted a 150 pip rally to 150.11 earlier today.
Meanwhile, rumors are circulating that EUR / GBP falling triggered stop loss order executions on bullish positions, leading to stronger demand for the British pound and a higher GBP / USD. It remains to be seen if the pair maintains gains for the rest of the day.
GBP / USD has gained 6% this year due to widespread dollar weakness and rising hopes for a rapid vaccine-driven economic recovery in the UK.
GBP / USD technical levels
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