GBP/USD climbs to fresh multi-month highs above 1.3050 on broad USD weakness

• GBP/USD continues to push higher after breaking above 1.3000.
• Greenback comes under renewed selling pressure after GDP data.
• US Dollar Index pares early gains to turns flat near 93.30.

After spending the first half of the day below 1.3000, the GBP/USD gained traction amid broad-based USD weakness and rose to its highest level since early March at 1.3062. As of writing, the pair is up 0.45% on the day at 1.3053 and is looking to close the fifth straight day in the positive territory.

USD recovery remains short-lived after GDP report

The data published by the US Bureau of Economic Analysis revealed on Thursday that the US’ real GDP shrunk by a record 32.9% on a yearly basis in the second quarter. Although this reading came in slightly better than the market expectation for a contraction of 34.1%, it caused the US Treasury bond yields to fall and weighed on the greenback.

Other data from the US showed that weekly Initial Jobless Claims increased by 12,000 to 1,434,000 in the week ending July 25th.

At the moment, the 10-year US T-bond yield is down 5% on the day and the US Dollar Index, which touched a daily high of 93.68, is flat at 93.28.

There won’t be any macroeconomic data releases featured in the UK economic docket on Friday. Later in the day, Personal Spending and Personal Income data from the US will be looked upon for fresh impetus.

Technical levels to watch for