- GBP / USD rose slightly for the third consecutive session on Thursday, while demand for the dollar was moderate.
- Mixed economic data from the United Kingdom did not impress bullish traders or gave a significant boost.
GBP / USD hit new weekly highs at the start of the European session and finally seems to have found acceptance above the 1,200 digit mark.
The pair quickly reversed an early dip in the 1.2360 region and became positive for the third consecutive session, although it did not follow up amid moderate activity through trading action. of the first part of Thursday.
The US dollar has remained on the defensive in the wake of the latest optimism about expectations that the peak of the coronavirus pandemic may occur soon and has been further driven by a weaker tone around US treasury bill yields.
However, the fact that the UK recorded its highest daily mortality rate on Wednesday has prevented investors from placing aggressive bull bets and appears to be one of the key factors in limiting large gains.
Meanwhile, Thursday’s mixed macroeconomic data for the UK, showing an unexpected economic contraction and an increase in the trade balance for February, did little to impress bullish traders or helped the pair capitalize on the rather positive positive move. from this week.
Therefore, it will be prudent to wait for solid follow-up purchases before traders begin to position themselves for any further appreciation movements. In the meantime, Thursday’s publication of the first weekly jobless claims in the United States will be examined for some momentum.
This, coupled with the scheduled speech by Fed President Jerome Powell, and new developments surrounding the coronavirus saga could influence the price dynamics in USD and help generate significant trading opportunities.
Technical levels to watch