GBP/USD Gains Over 1% to Kickstart the Week

2 min read
20 Apr, 21
Written by Clover4X

 

 

Article Highlights:
  • The British pound moves to a 1-month high against the US dollar
  • The greenback has been declining against the yen and the pound for six straight days

GBP/USD Gains Over 1% to Kickstart the Week

On Monday the British pound sterling advanced more than 1% against the US dollar. In the early afternoon yesterday, a fresh USD selling across the board aided the currency pair to reach a near one-month high in the neighborhood of 1.3990 to 1.40.

The GBP/USD pair opened for trading this week at 1.3838 and reached a Monday low of 1.3809 before traders bought the dip and pushed it to an intraday high of 1.3993. The pair closed the day at 1.3987, an increase of 1.10%

Monday’s gains extended the sterling rally to six days in a row. The UK currency has been in favor since Apr 12 when it was hovering near $1.3660 to slightly below $1.37. The $1.40 level was reached in the early hours of Tuesday’s session when one sterling pound purchased $1.4009.

US: A Quick Economic Recovery?

In the last seven trading days, the pair has gained nearly 2.5% as sterling bulls remain well invested in the currency. The GBP/USD rate yesterday broke the 50-day moving average, to build on last week’s strong rebound from the 100-day moving average, which acted as support near the 1.3670 area.

Despite strong US data that suggests a quick economic recovery, investors largely offered the greenback yesterday. Across the currency board, USD weakness narrated the day, which boosted buying momentum in the GBP/USD.

Underpinned by a weak dollar, the euro moved higher as the EUR/USD broke the 1.20 level for the first time since Mar 5. The EUR/USD reached an intraday of 1.2048 on Monday and continues pushing higher today to a session peak of 1.2080.

The USD/CHF moved to a five-week low as the pair dipped near the area of 0.9130, marking a daily decline of 0.8% on Monday. The USD/JPY also slipped significantly as it went from an opening price of 108.76 to a session low of 108.00, a drop of 0.7%. The USD/JPY went through its sixth straight day of losses on Monday.

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