GBP/USD extends recovery above 1.3100

GBP/USD staged a strong comeback over the last sessions as the dollar weakened across the board on the back of dovish FOMC tone.

GBP/USD has risen nearly 200 pips from yesterday’s lows and accelerated after breaking above the 1.3080/1.3100 area. Cable peaked at 1.3120 and it was last trading up 0.61% at the 1.3105/10 area.

The latest string of mixed US data offered no reprieve to the dollar. US jobless claims fell to a 2-month low of 252K (262K expected) while on the other hand, existing home sales fell again in August by 0.9% versus an increase of 1.1% expected.

GBP/USD technical levels

As for technical levels, immediate resistances could be found at 1.3156 (50-day SMA), 1.3189 (21-day SMA) and 1.3246 (Sep 16 high). On the other hand, supports are seen at 1.3024 (Sep 22 low), 1.2945 (Sep 20 & 21 low) and 1.2900 (psychological level).