GBP/USD clocks two-week high in Asia

The broad based weakness in the US dollar amid oil price drop in Asia pushed the GBP/USD pair to a high of 1.2532 levels.

Focus on Oil

The data calendar across Europe and in the US is thin, which leaves the pair and the FX markets in general at the mercy of the oil price action.

Oil was down more than 1% in early Asia, which led to a sell-off in the US dollar and other risk assets. However, the oil benchmarks recovered losses and were last seen trading with moderate gains.

Consequently, the rally in the GBP/USD pair stalled 1.2532 and was last seen trading around 1.2520 levels.

GBP/USD Technical Levels

A break above 1.2534 (23.6% of 1.2083-1.2674) would open doors for 1.2585 (Nov 10 high) and 1.26 levels. On the other hand, a breakdown of support at 1.25 (50-DMA) could yield a drop to 1.2452 (10-DMA), under which the psychological support of 1.24 could come into play.