The downfall of the dollar thanks to the “Steven Slide” is felt across the board. All the other currencies are gaining against the US dollar but there are differences between them.
GBP/USD has been one of the biggest gainers, seeming to compensate for a long period of being depressed. Brexit is still very real, but perhaps some hopes for a softer Brexit are also beginning to sip in, in addition to the catch up that the pound is doing against its peers.
UK Chancellor of the Exchequer Phillip Hammond said he is happy with the current levels of the pound against the euro and the dollar. This is a good time to take a look at the levels.
GBP/USD is already well into the pre-EU Referendum levels. It had an initial struggle with 1.40 but the UK jobs report already sent it above 1.41, even though there was nothing impressive in that report. The number of jobless claims is rising and wages only met expectations.
From there, the ascent to higher ground was unfettered. Pound/dollar continued moving up, not only against the dollar but also against the euro, yen, and basically all currencies.
The peak, so far, is 1.4328. This is an important level: it was a key line of support in May 2016, in the run-up to the referendum. From there, we saw a drop and the next line is only at 1.4180.
Below, we find 1.4050, a level where the pound hesitated before storming higher, and it is closely followed by the round number of 1.40 and then 1.3950, another cap on cable before the recent jump.
Looking up, we are back to levels seen in March 2016: 1.4530 is the next level to watch. Further above, 1.50 is not only a round number but the high point of the pound just before it collapsed on Brexit.
More: GBP/USD: Cable Rises Back Above The 1.4000-level; What’s Next?
Here is the weekly chart, followed by the hourly chart: