GBP/USD Rallies as bulls aim for YTD high

During the North American session on Friday, the GBP/USD pair recovered from its losses on Thursday and reached a new weekly high. The 100-DMA and important resistance at 1.2631/34 have been breached, according to the technical forecast.A decline below 1.2630 may expose 1.2500 and the 200-DMA at 1.2539, while buyers aim for 1.2803 and the YTD high at 1.2894.


Despite rising US Treasury yields not being able to support the Greenback, the British Pound gained 0.21% vs the US Dollar. The GBP/USD pair is currently trading at 1.2703, having rebounded from a daily low of 1.2644.

The 100-day moving average (DMA) and the May 3 high of 1.2631/34 have been convincingly broken by the GBP/USD, exacerbating the surge towards the 1.2690ish area. It is still far from regaining the psychological 1.2700 level, which would enable it to challenge the year-to-date (YTD) high.

The next important levels to watch out for would be the high of 1.2803 on March 21 and the YTD high of 1.2894, assuming the buyers are able to regain 1.2700. On the other hand, should the GBP/USD pair fall below 1.2630, sellers would be in control. That will instantly expose 1.2500, with the 200-DMA up next at 1.2539.