- GBP / USD trades 1% higher on Friday after another bullish close.
- The pair hit its highest level of its year at 1.3357 as the bulls settle in.
GBP / USD weekly chart
Cable hit its highest level this year as the US dollar’s surrender continued this afternoon. The AUD and NZD were the only other majors to beat the pound, but the JPY also swung to 3rd place on Friday. As Powell’s update yesterday failed to inspire dollar bulls, it will be interesting to see if next week’s NFP data can change the course of the nascent greenback.
Looking at the chart now, the next resistance zone is at the wave high of 1.3515 from December 13, 2019. Since that point, the GBP / USD pair hit a low of 1.1414 in March 2020 and it’s hard to believe the price is where it is today.
Interestingly, the price is also heading towards the close of the June 24, 2016 referendum session in the UK at 1.3675. It will be interesting to see how the price reacts around this level if it has been used as both support and resistance since.
The indicators are obviously bullish at the moment. The MACD histogram is green and the signal lines are above zero. The relative strength index is about to be overkill, but there is still room up for a bit more upside.
Overall, it’s hard to see this trend end anytime soon. Brexit negotiations have taken a break for next week and the main event will be the US jobs report. There are still PMIs during the week to keep us busy, but the non-farm payroll (NFP) reading will be the main event.