GBP/USD scales new heights as Trump-led USD sell-off extends

The GBP/USD pair is on a four-day winning spree, now extending its bullish run towards 1.2600 levels amid renewed broad USD weakness, as the treasury yields continue to tumble in response to fading Trump trade.

The US dollar witnessed aggressive selling versus its main competitors in the overnight trades, after the US President Trump resorted to jawboning the currency once again, citing that USD is too strong. His comments sent the treasury yields tumbling, with the benchmark 10s down to fresh five-month lows.

Moreover, fresh pick-up in GBP demand over the last hours can be also attributed to strong results revealed by the British Chambers of Commerce (BCC) business survey. Also, expectations of better Chinese trade figures for March keeps the sentiment around the risk currency – GBP somewhat buoyed.

Looking ahead, amid a lack of economic data from the UK docket today, focus will remain on the BOE credit conditions survey and US dataflow due to be reported later in the NA session.

GBP/USD Levels to consider            

The immediate resistance for the pair could be seen at 1.2595 (Classic R2/ Fib R3) followed by 1.2615 (Mar 27 high) and 1.2700 (zero figure). To the downside, supports are aligned at 1.2500 (psychological level), 1.2481/77 (20 & 5-DMA) and 1.2464/50 (10-DMA/psychological level).