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  • GBP/JPY heads for the highest close since February 2020.
  • Pound outperforms on Tuesday after BoE Bailey comments.

The GBP/JPY pair rose further during the American session and printed a fresh four-month high at 142.02. The pound failed to make a run above 142.00 and pulled back modestly.

As of writing, it trades at 141.80, up a hundred pips for the day, on its way to the highest close since February 2020. A stronger pound across the board continues to support the cross.

GBP outperforms on Tuesday

The pound is the best performer among majors on Tuesday. Comments from Bank of England Governor Bailey on European hours were seen as not so dovish, reducing expectations of negative interest rates. He called it a “controversial issue”.

The latest numbers showed 45,530 new COVID-19 cases in the UK, below 46,170 of a day ago. The trend continues to show an improvement.

EUR/GBP dropped to 0.8919, the lowest level since November, adding strength to the pound. GBP/USD rose above 1.3600, and it was holding onto important daily gains.

Technical levels