- GBP/USD caught some aggressive bids and rallied fresh weekly tops in the last hour.
- The USD struggled to preserve daily gains despite upbeat data, surging US bond yields.
- Bulls might turn cautious ahead of Powell’s speech at the Jackson Hole Symposium.
The GBP/USD pair rallied around 80 pips during the early North American session and spiked to fresh daily tops. Bulls might now be looking to reclaim and extend the momentum beyond the 1.3200 mark.
The pair attracted some dip-buying near the 1.3115 region and was now looking to build on the previous day’s goodish rebound from over one-week lows. The US dollar struggled to preserve its intraday gains despite upbeat US Durable Goods Orders data, which, in turn, was seen as one of the key factors that provided a goodish lift to the GBP/USD pair.
In fact, the headline orders surpassed estimates by a big margin and increased 11.2% MoM in July. Adding to this, the previous month’s reading was also revised higher to 7.7% from 7.3% reported previously. Moreover, Core durable goods orders, which exclude transportation items, rose 2.4% during the reported month as against 2% expected.
Meanwhile, the USD bulls seemed rather unimpressed by some strong follow-through upsurge in the US Treasury bond yields. Even a cautious opening in the US equity markets did little to benefit the greenback’s relative safe-haven status, or hinder the GBP/USD pair goodish intraday rally to weekly tops, around the 1.3195 region.
It, however, remains to be seen if bulls are able to capitalize on the move or opt to lighten their positions as the focus remains on the Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium. Powell’s comments will be scrutinized for clues about the US central bank’s policy outlook, which will influence the near-term USD price dynamics and assist investors to determine the GBP/USD pair’s next leg of a directional move.
Technical levels to watch
Share
