GBP/USD taps 1.20 mark, over 1-week tops after Powell’s comments and ahead of BoE
- GBP/USD gained traction for the third straight session on Thursday amid sustained USD selling.
- The USD weakened further after Powell said that the Fed still has room for further policy easing.
- Market participants now shift focus to the latest BoE monetary policy update for a fresh impetus.
The bearish pressure around the greenback picked up paced in the last hour and lifted the GBP/USD pair to over one-week tops, around the key 1.2000 psychological mark.
Following the previous session's volatile swings and an early downtick to the 1.1775 region on Thursday, the pair caught some fresh bids and built on its recent recovery move from 35-year lows set last week.
The bullish mood for the third consecutive session, also marking the pair's fourth day of a positive move in the previous five, was exclusively sponsored by persistent offered bias surrounding the US dollar.
Meanwhile, the latest leg of the uptick came after the Fed Chair Jerome Powell, in an interview on NBC Today, said that the US central bank still has room for more action to combat coronavirus crisis.
This comes on the back of the Fed's recent unlimited quantitative easing program and exerted some additional downward pressure on the already weaker greenback during the mid-European session.
Moving ahead, market participants now shift their focus to the latest monetary policy update by the Bank of England, which will influence the GBP price dynamics and provide some meaningful impetus.
Technical levels to watch