Search ForexCrunch
  • Pound outperforming on Tuesday among G10 currencies.
  • US dollar holds steady as risk appetite eases.

The GBP/USD pair printed a fresh two month high and then pullback back. The pound climbed to 1.3277, the strongest level since September 4 and as of writing, it trades at 1.3220, up 60 pips for the day, off highs.

The key driver in cable on Tuesday has been the pound. The sterling outperformed boosted after GBP/USD broke above 1.3200. Technical played an important role. Regarding fundamentals, expectations about an agreement between the European Union and the United Kingdom are rising as negotiations continue in London; and jobs data from the UK on Tuesday came in above expectations.

The US dollar is little changed across the board compared to Monday’s close. It is being supported by higher US yields. Also, risk appetite eased, removing pressure out of the greenback. In Wall Street, the Dow Jones is up by 0.60% while the Nasdaq losses 1.20%.

From a technical perspective, the GBP/USD gained strength after breaking above 1.3200 that boosted the pound across the board. As long as the pair holds above 1.3150, the bias will point to the upside. The immediate resistance is the 1.3275/80 area; a break higher should clear the way for 1.3300.

Technical levels