- The pound improved results on Thursday, while the DXY reached new lows in one week.
- GBP / USD is heading towards the highest close since April 2018.
GBP / USD rose in the early hours of Thursday to 1.3745, the highest level since April 2018. It then retraced, finding support above the 1.3700 area. The pair is hovering around 1.3725, maintaining daily gains.
The key factor remained the appetite for risk and a weaker US dollar. The DXY fell to 90.04, the lowest level since January 13. Better than expected economic data from the US did not help the dollar.
Old US yields they kept dollar losses limited. The 10-year yield rose to 1.12% before falling back to 1.10%. On Wall Street, stock prices are mixed. The Dow Jones remains flat while the Nasdaq is up 0.49%.
The pound is doing better on Thursday, although it lost some steam with the ECB press conference. On Friday, the data from retail sales will be published in the UK. In addition, the European PMIs will be published.
From a technical perspective, GBP / USD maintains a firm bullish tone, particularly when it is above 1.3700. A decline below could be followed by a correction or consolidation phase. On the other hand, a close below the 20-day moving average at 1.3590 would open the door to further losses.
Technical levels
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