GBP/USD hits fresh highs above 1.2400, USD recovery fades

The GBP/USD pair broke the 1.2305 resistance during the American session and rose further. It climbed to 1.2415, the highest level since March 16. It  |  27/03/2020 16:29
  • Pound prints fresh weekly highs versus USD and EUR. 
  • GBP/USD up more than 750 pips over the week, the best performance in years. 

The GBP/USD pair broke the 1.2305 resistance during the American session and rose further. It climbed to 1.2415, the highest level since March 16. It is trading near the top, consolidating a weekly gain or around 770 pips, the biggest in years. 

The greenback remains under pressure across the board. The recovery faded and it turned again to the downside weakened by falling US yields. On Thursday, USD dropped when equity prices jumped. On Friday, Wall Street is pulling back and the greenback is also lower, showing no correlation at the moment with equities. 

Lower US yields could be the explanation for the weakness seen in the greenback. The DXY rose earlier on Friday to 99.80 and as of writing, trades at 98.84, the lowest in ten days. The 10-year US yield is around 0.72%, testing weekly lows. 

Economic data from the US continues to show how dramatic is the economic impact of the coronavirus. Consumer confidence suffered the largest decline since 2008. Regarding Covid-19, the US surpassed China in confirmed cases.

The pound is outperforming on Friday, even after United Kingdom Prime Minister Boris Johnson announced he tested positive for coronavirus. 

Technical levels 

 

 

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