- GBP/USD extends gains on the back of a weaker US dollar across the board.
- DXY breaks lower and hits the lowest level in 25 days at 94.82.
The GBP/USD broke above 1.2860/65 and climbed to 1.2892, the strongest level since last Thursday. As of writing it was trading around day’s highs and near the 1.2900 handle.
The move to the upside was supported by a decline of the greenback. The Dollar Index broke key support levels and intensified the negative tone. An improvement in risk appetite pushed stocks higher and weakened the US dollar. Despite rising against the dollar, the pound fell versus the euro and the pound as Brexit concerns remain a key factor.
GBP/USD Short-term levels to watch
To the downside, support levels might be located at 1.2865 (Asian session high), 1.2825 (Aug 27 low) and 1.2790. On the upside, resistance could be seen at 1.2890 (daily high), 1.2920 and 1.2935 (Aug 22 high).
On Thursday’s the pair dropped sharply but it managed to hold above a key short-term uptrend line that now stands at 1.2810/20. A break lower would change the current short-term bullish bias to bearish/neutral. GBP/USD is up for the second trading day in a row on Monday, but it still below the level it opened on Thursday.
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