GBP/USD rallies to near 3-week tops, closer to mid-1.2700s
• The USD bulls remain on the back-foot and help regain traction.
• Technical buying above 1.2710 further accelerates the up-move.
The GBP/USD pair finally broke out of its Asian session consolidation phase and rallied around 70-pips to near three-week tops.
The latest leg of a sudden spike lacked any obvious fundamental catalyst and could be solely attributed to some renewed US Dollar selling pressure during the early European trading session.
Expectations of a dovish Fed next year, along with a partial US government shutdown kept the USD bulls on the defensive and turned out to be one of the key factors driving the pair higher.
Adding to this, possibilities of some intraday trading stops being triggered, on a sustained move beyond the 1.2700-1.2710 hurdle, further accelerated the up-move amid relatively thin liquidity conditions.
Hence, it would be prudent to wait for a strong follow-through price action before confirming a near-term bullish breakout, backed by genuine buying rather than a possible stop-run.
Technical levels to watch
Today Last Price: 1.2744
Today Daily change: 45 pips
Today Daily change %: 0.354%
Today Daily Open: 1.2699
Previous Daily SMA20: 1.2661
Previous Daily SMA50: 1.2793
Previous Daily SMA100: 1.2899
Previous Daily SMA200: 1.3191
Previous Daily High: 1.271
Previous Daily Low: 1.2635
Previous Weekly High: 1.2778
Previous Weekly Low: 1.2616
Previous Monthly High: 1.3176
Previous Monthly Low: 1.2723
Previous Daily Fibonacci 38.2%: 1.2682
Previous Daily Fibonacci 61.8%: 1.2664
Previous Daily Pivot Point S1: 1.2653
Previous Daily Pivot Point S2: 1.2606
Previous Daily Pivot Point S3: 1.2577
Previous Daily Pivot Point R1: 1.2728
Previous Daily Pivot Point R2: 1.2757
Previous Daily Pivot Point R3: 1.2804