GBPUSD surges towards key moving averages

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The GBPUSD has continued its upward momentum in early U.S. trading, breaking above the key swing area between 1.2351 and 1.2375. The pair is now pushing past the 1.2400 level, setting its sights on yesterday’s high of 1.24214.

This resistance zone aligns with the 200-hour moving average at 1.24185 and the 100-hour moving average at 1.24226, which may act as a hurdle for further upside. Traders will be watching whether buyers can sustain the breakout or if the resistance forces a pullback. On the downside, today’s low was established at 1.23317.

The gains in the GBPUSD come despite higher yields in the US. The two-year yield is up 2.6 basis points at 4.293%. The 10 year yield is up 4.0 basis points at 4.535%.

Pres. Trump announced blanket tariffs on steel and aluminum and threatened to add tariffs on cars, pharmaceuticals and chips as well.

US stocks are opening lower with the NASDAQ index down -0.98% and the S&P index down -0.24%.

Shares of Meta are down for the first time in 16 days (-0.68%)

This article was written by Greg Michalowski at www.forexlive.com.