• The GBP remains supported by Carney’s more upbeat comments on Thursday.
• A subdued USD price action near two-week tops prompts some short-covering.
The GBP/USD pair quickly reversed a dip to an intraday low level of 1.2921 and rallied nearly 50-pips in the last hour, now eyeing a move towards the overnight swing high.
The British Pound remained supported by Thursday's more upbeat comments by the BoE Governor Mark Carney, saying that markets should not prepare for a scenario of a rate cut and (or) no further rate hikes.
Meanwhile, the US Dollar failed to capitalize on the recent rally and witnessed a subdued action, albeit held steady, near two-week highs, which could be one of the other factors extending some support to the major.
The latest leg of a sudden pickup over the past couple of hours lacked any obvious fundamental catalyst and could be attributed to some follow-through short-covering on a sustained move back above mid-1.2900s.
Against the backdrop of the uncertainty surrounding Brexit, market participants expect volatility to remain elevated in the near-term and hence, it would now be interesting to see if the pair is able to reclaim the critical 1.30 handle.
Technical levels to watch
GBP/USD
Overview:
Today Last Price: 1.2961
Today Daily change %: 0.09%
Today Daily Open: 1.2949
Trends:
Daily SMA20: 1.2997
Daily SMA50: 1.2808
Daily SMA100: 1.2892
Daily SMA200: 1.3027
Levels:
Previous Daily High: 1.2997
Previous Daily Low: 1.2854
Previous Weekly High: 1.3212
Previous Weekly Low: 1.3043
Previous Monthly High: 1.3214
Previous Monthly Low: 1.2438
Daily Fibonacci 38.2%: 1.2942
Daily Fibonacci 61.8%: 1.2908
Daily Pivot Point S1: 1.287
Daily Pivot Point S2: 1.2791
Daily Pivot Point S3: 1.2727
Daily Pivot Point R1: 1.3012
Daily Pivot Point R2: 1.3076
Daily Pivot Point R3: 1.3155
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