- GBP / USD gains ground for the third consecutive session on Thursday.
- The dominant bearish tone around the USD remained favorable.
GBP / USD continued to advance higher at the start of the North American session and reached near two-week highs closer to the 1.2480-85 supply area.
The pair managed to gain strong follow-up traction for the third consecutive session on Thursday and has now risen more than 100 pips from the daily swing lows, around the 1.2360 region, against a background of general weakness. American dollar.
The USD remained on the defensive in the wake of the latest optimism that the coronavirus pandemic could soon reach its peak and was further pushed by the disappointing publication of the first weekly American jobless claims.
The already weaker sentiment surrounding the greenback has further deteriorated, driving the key USD index below 100.00 after the Fed announced that it will provide up to $ 2.3 trillion in additional loans. to support the economy.
A further drop in the University of Michigan consumer confidence index to 71.0 in April, and a scheduled speech by Fed President Jerome Powell, did little to provide respite for USD bulls or to curb the positive movement of the pair.
Intraday momentum resulted in short term trading stops near the peaks of the night swing, around the 1.2420 region, and was found to be one of the key factors behind the final stage of a recovery the pair suddenly over the last hour.
It will now be interesting to see if the pair is able to capitalize on the move and cross the key psychological bar of 1.2500, which could confirm a further bullish break and set the stage for a further near-term appreciation move.
Technical levels to watch