GBP/USD climbs above 1.2700 in the European session
- GBP/USD trades in positive territory above 1.2700 in the European session.
- Financial markets in the US will close early on Friday.
- Improving risk mood could help the pair stretch higher ahead of the weekend.
After a modest gain on Thursday, GBP/USD surged to a two-week high of 1.2750 early Friday, showcasing bullish momentum.
Market Update
Following the Thanksgiving break in the US, the US Dollar (USD) faced renewed selling pressure due to a positive shift in risk sentiment during the Asian session. Additionally, declining US Treasury bond yields made it challenging for the USD to stabilize.
Key Highlights
- GBP/USD hits highest level in over two weeks at 1.2750.
- USD under pressure amid improved risk mood and falling bond yields.
- US stock index futures up 0.3% to 0.4%.
- FTSE 100 Index trading flat.
Market Expectations
The Bank of England (BoE) will release the Financial Stability Report, expected to have minimal impact on markets. With no major US economic data releases and early market closures, subdued trading is anticipated. Month-end flows and position adjustments may increase volatility later in the day.
GBP/USD Technical Analysis
GBP/USD hovers above 1.2700 with the 100-period Simple Moving Average (SMA) providing support. Resistance levels at 1.2760, 1.2800, and 1.2835. Key support at 1.2640 and 1.2600.
Pound Sterling FAQs
Key Insights:
- Pound Sterling (GBP) is the oldest currency and the UK’s official currency.
- GBP is the fourth most traded currency globally, with key pairs like GBP/USD and GBP/JPY.
- BoE’s monetary policy and economic data influence GBP value significantly.
- Trade Balance impacts GBP based on export-import differentials.
**Analysis:**
– The GBP/USD pair has reached a two-week high, indicating bullish momentum in the market.
– The US Dollar faces selling pressure due to improved risk sentiment and declining bond yields.
– Market expectations are for subdued trading due to early market closures and lack of high-impact economic data releases.
– Technical analysis shows key support and resistance levels for GBP/USD.
– Understanding Pound Sterling FAQs provides insights into the factors influencing GBP value.